In re Conseco Life Insurance Co. Life Trend Insurance Marketing and Sales Practices Litigation
Published: Feb. 8, 2014 | Result Date: Nov. 8, 2013 | Filing Date: Jan. 1, 1900 |Case number: 3:10-md-02124-SI Settlement – $35,000,000
Court
USDC Northern
Attorneys
Plaintiff
Scott Gilbert
(Polsinelli PC)
Benjamin R. Davidson
(Law Offices of Benjamin Davidson APC)
David J. Millstein
(Millstein & Associates)
Defendant
Raoul D. Kennedy
(Skadden, Arps, Slate, Meagher & Flom LLP)
Joan B. Tucker Fife
(Winston & Strawn LLP)
Facts
Several class actions were filed against Conseco Life Insurance Co. involving its decision to increase cost of insurance and expense charges for "Lifetrend III" and "Lifetrend IV" Policies. The lawsuits were later consolidated.
Result
The parties agreed to a settlement that provided several categories of benefits to certain class members. For example, some policyholders may be entitled to receive a cash payment based on a re-crediting of the cost of insurance charges that Conseco deducted from his or her accumulation account beginning in October 2010, plus interest. If the policyholder elects this option, his or her policy would terminate. In all, the economic value of the settlement was estimated at approximately $27 million, excluding costs, attorney fees, incentive awards, and settlement administration costs. The court subsequently granted plaintiffs' request for attorney fees and costs. As such, the court awarded in excess of $6.9 million in attorney fees; more than $1.07 million for litigation expenses; and $5,000 to each of the six named plaintiffs in service awards.
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