Pacific Life Insurance Company is a Southern California provider of life insurance, annuities, and mutual funds. A nationwide class action suit was initiated in 2005 against Pacific Life, alleging that the company provided unsuitable variable annuities for certain tax-deferred retirement arrangements. The litigation ultimately concluded in a large settlement paid by Pacific Life Insurance.
The plaintiffs had purchased variable annuity contracts from Pacific Life Insurance through independent brokers. The consumers had purchased the annuities for their Individual Retirement Accounts (IRAs). The plaintiffs’ complaint alleged that Pacific Life Insurance had committed securities fraud because neither the brokers nor Pacific Life’s marketing materials disclosed that the main economic value of deferred annuities – tax deferral of earnings – is unnecessary for people investing through qualified retirement plans such as IRAs. Essentially, the plaintiffs claimed, the tax shelter being offered by the annuity was of no use to them, or redundant.
Finally, the plaintiffs claimed that Pacific Life Insurance had failed to require its sales representatives and independent brokers to conduct a suitability analysis to determine whether the investments sold were a suitable investment for the seniors who purchased them.
The settlement was approved by a Georgia district court and included direct payments to class members, and cash credits to affected consumers’ annuity accounts. Evans Law Firm, Inc. wasn’t involved with this case but will investigate annuities sold by Pacific Life Insurance Company.
If you or a loved one has purchased a deferred annuity from Pacific Life Insurance Company, please contact Evans Law Firm, Inc. today for a free and confidential evaluation of your rights. We can be reached by email at email@example.com, or by telephone at (888) 503-8267 or (415) 441-8669.