Facts

Defendant Northwestern Mutual issued a Term Life Policy Series MN through TT, to plaintiff class members (Term Class) between 1983 and Oct. 7, 2008; and individual Disability Policy, Series LL through RR, to persons and entities (Disability Class) between 1981 and Oct. 7, 2008. Plaintiffs sued defendant for breach of contract, breach of fiduciary duties, fraud, deceptive marketing and sales practices and unfair competition.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended defendant failed to pay dividends required by certain term life insurance policies and engaged in improper sales as well as marketing practices by misleading customers as to the payment of dividends.

DEFENDANT'S CONTENTIONS:
Defendant denied the allegations, contending it complied with the policy contract terms. It claimed its sales, marketing, and dividend determination practices with respect to the term and disability insurance policies were fair and appropriate.

Damages

The class sought an unknown amount of damages based on defendant's misconduct.

Result

The case settled for $92 million. Term Class members would recover an amount based on the premiums paid over the life of the term policies covered by the proposed settlement. Members of the Disability Class would receive a pamphlet providing information about their Northwestern Mutual disability policies. The court preliminarily approved the settlements. Class counsel would seek 33 percent of the settlement amount for attorney fees and six percent for litigation costs.