Facts

Vikki Vargas was employed by a large telecommunications company. Vargas withdrew her funds from the company's pension plan and gave the lump sum over to SunAmerica Securities to be reinvested by their representative, Sharon Kearney.

PLAINTIFF'S CONTENTIONS:
Vargas claimed that Sharon Kearney persuaded her to give up her monthly pension benefit and take a lump sum distribution to be invested by SunAmerica. She argued that when doing so, Kearney and SunAmerica committed negligent and intentional misrepresentation, breach of fiduciary duty, and negligent supervision (SunAmerica).

DEFENDANT'S CONTENTIONS:
SunAmerica and Kearney claimed that Vargas had compelling reasons to withdraw from her pension plan, that the subsequent investments made were suitable, that SunAmerica did not fail to supervise Kearney, that Vargas knew or should have known of the risks of the investments she made, and that Vargas did not lose any money, rather, she spent it.

Result

The jury found unanimously that SunAmerica did not breach their fiduciary duty to Vargas and that Kearney did not misrepresent or fail to disclose material facts.

Other Information

According to defense counsel: Because SunAmerica had made a Section 998 offer before trial, the court awarded costs to SunAmerica of over $100,000. Plaintiff has filed a notice of appeal.