Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

MetLife reaches settlement in lawsuit over alleged improper sales |


Published on

  • Be the first to comment

  • Be the first to like this

MetLife reaches settlement in lawsuit over alleged improper sales |

  1. 1. 9/17/15, 3:17 PMMetLife reaches settlement in lawsuit over alleged improper sales | Page 1 of 3 MetLife reaches settlement in lawsuit over alleged improper sales Posted:Posted:Thursday, August 19, 1999 By PAULA STORY The Associated Press PITTSBURGH -- MetLife would pay at least $1.7 billion to settle allegations it duped customers into buying questionable policies, according to a preliminary agreement announced Wednesday. The class-action litigation in U.S. District Court in Pittsburgh was Pled four years ago on behalf of about 7 million current and former customers of Metropolitan Life Insurance Co. between 1982 and 1997. The settlement must be approved by the court. "This settlement provides a fair resolution to issues that have been the subject of protracted litigation and that have affected much of our industry," said Robert H. Benmosche, chairman and chief executive ofPcer of MetLife. Melvyn L. Weiss, co-lead counsel for the plaintiffs, said the settlement is one of several in recent years involving reimbursement for alleged deceptive insurance sales practices. The allegations include: A practice known as "churning," in which an agent sells a customer a new, larger policy using the cash value of an existing policy to purchase it. When the cash value of the old policy is exhausted, the customer must pay the larger premium or let the policy lapse. Sales of policies with so-called "vanishing premiums." Customers were told that after a certain number of years, they wouldn't have to pay their premium anymore, but in some cases that never happened. Insurance policies were portrayed as investment products but didn't earn the kind of money that customers believed they would for retirement. MetLife paid a $25 million Pne in Tampa, Fla., and an $800,000 Pne in Connecticut over similar allegations. MetLife plans to mail information about the settlement to about 4 million current and 3 million former customers beginning Aug. 27. "These practices were common in the industry since the early '80s. MetLife was not alone," Weiss said. Prudential Insurance Co. of America has already paid $70 million in penalties and set aside $2.6 billion to pay policyholders who sued over similar sales practices. Copyright 1999 The Topeka Capital-Journal Related SearchesRelated Searches Trending this week:Trending this week: Broker escapes tower's collapse ( 1.0&at_ab=- &at_pos=0&at_tot=10&at_si=55fb3be1f54f5fd4) The Watertower Debate ( 1.0&at_ab=- &at_pos=1&at_tot=10&at_si=55fb3be1f54f5fd4) Troops patrolling streets of Washington as federal government reopens after attack ( 1.0&at_ab=- &at_pos=2&at_tot=10&at_si=55fb3be1f54f5fd4) Wendy Offerman ( 1.0&at_ab=- &at_pos=3&at_tot=10&at_si=55fb3be1f54f5fd4) Suspected killer accused in murder-for-hire plot ( 1.0&at_ab=- &at_pos=4&at_tot=10&at_si=55fb3be1f54f5fd4) Killing near river described ( 1.0&at_ab=- &at_pos=5&at_tot=10&at_si=55fb3be1f54f5fd4) Wrestling rankings ( 1.0&at_ab=- &at_pos=6&at_tot=10&at_si=55fb3be1f54f5fd4) Killer Pghts death, says doctors didn't tell him he was ill
  2. 2. 9/17/15, 3:17 PMMetLife reaches settlement in lawsuit over alleged improper sales | Page 2 of 3 MELVYN L. WEISS ( related-search&&querystring=%22MELVYN L. WEISS%22) CO-LEAD COUNSELCO-LEAD COUNSEL ( related-search&&querystring=%22CO-LEAD COUNSEL%22)related-search&&querystring=%22CO-LEAD COUNSEL%22) ALLEGED DECEPTIVE INSURANCE SALESALLEGED DECEPTIVE INSURANCE SALES PRACTICESPRACTICES ( related-search&&querystring=%22ALLEGED DECEPTIVE INSURANCE SALES PRACTICES%22)related-search&&querystring=%22ALLEGED DECEPTIVE INSURANCE SALES PRACTICES%22) CHAIRMAN AND CHIEF EXECUTIVE OFFICER ( search&&querystring=%22CHAIRMAN AND CHIEF EXECUTIVE OFFICER%22) TAMPA ( searches&utm_campaign=mead-related-search&&querystring=%22TAMPA%22) METLIFE ( searches&utm_campaign=mead-related-search&&querystring=%22METLIFE%22) USDUSD ( searches&utm_campaign=mead-related-searches&utm_campaign=mead-related- search&&querystring=%22USD%22)search&&querystring=%22USD%22) CONNECTICUT ( search&&querystring=%22CONNECTICUT%22) THE TOPEKA CAPITAL-JOURNALTHE TOPEKA CAPITAL-JOURNAL ( search&&querystring=%22THE TOPEKA CAPITAL-JOURNAL%22)search&&querystring=%22THE TOPEKA CAPITAL-JOURNAL%22) BUSINESS_FINANCEBUSINESS_FINANCE ( searches&utm_campaign=mead-related-searches&utm_campaign=mead-related- search&&querystring=%22BUSINESS_FINANCE%22)search&&querystring=%22BUSINESS_FINANCE%22) U.S. DISTRICT COURTU.S. DISTRICT COURT ( searches&utm_campaign=mead-related-search&&querystring=%22U.S. DISTRICT COURT%22)searches&utm_campaign=mead-related-search&&querystring=%22U.S. DISTRICT COURT%22) INVESTMENT PRODUCTS ( search&&querystring=%22INVESTMENT PRODUCTS%22) ROBERT H. BENMOSCHE ( results? related-search&&querystring=%22ROBERT H. BENMOSCHE%22) METROPOLITAN LIFE INSURANCE CO. ( searches&utm_campaign=mead-related-search&&querystring=%22METROPOLITAN LIFE INSURANCE CO.%22) INSURANCE POLICIES ( search&&querystring=%22INSURANCE POLICIES%22) TOPEKA CAPITALTOPEKA CAPITAL ( search&&querystring=%22TOPEKA CAPITAL%22)search&&querystring=%22TOPEKA CAPITAL%22) PITTSBURGHPITTSBURGH ( Home Insurance Quotes We Shop For You. Average Savings of $437/year! Get Your Free Quote Now. ( 1.0&at_ab=- &at_pos=7&at_tot=10&at_si=55fb3be1f54f5fd4) Dean: Multiple sclerosis can't slow this racing mom ( 1.0&at_ab=- &at_pos=8&at_tot=10&at_si=55fb3be1f54f5fd4) Family torn apart in wake of Columbine ( 1.0&at_ab=- &at_pos=9&at_tot=10&at_si=55fb3be1f54f5fd4) Powered by AddThis (// tools/overview? utm_source=AddThis%20Tools&utm_medium=image&utm_campaign=%5Bobject%20
  3. 3. 9/17/15, 3:17 PMMetLife reaches settlement in lawsuit over alleged improper sales | Page 3 of 3 © 2015. All Rights Reserved. | Contact Us ( searches&utm_campaign=mead-related-search&&querystring=%22PITTSBURGH%22)searches&utm_campaign=mead-related-search&&querystring=%22PITTSBURGH%22) PRUDENTIAL INSURANCE CO. OF AMERICA ( search&&querystring=%22PRUDENTIAL INSURANCE CO. OF AMERICA%22) FLORIDA ( search&&querystring=%22FLORIDA%22) U.S. DISTRICT COURT IN PITTSBURGH ( results? searches&utm_campaign=mead-related-search&&querystring=%22U.S. DISTRICT COURT IN PITTSBURGH%22)