Facts

Marie Sweeney and Anita Williams, as Trustee for the Estate of George J. Miller, filed a class action against National Western Life Insurance Co. regarding the insurance company's deferred annuities. Plaintiffs asserted claims for elder abuse, violation of the California Business and Professions Code, and RICO.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that defendant conducted systematic unfair, fraudulent, and unlawful sales practices in connection with its solicitation, offering and sale of deferred annuity products to senior citizens in California who were not suitable candidates to purchase them. Plaintiffs also contended that defendant's practice failed to comply with insurance disclosure requirements and consumer protection laws. Moreover, that defendant violated elder abuse statutes and unfair competition laws. Plaintiffs then argued that defendants should be enjoined from, among others, selling a deferred annuity to senior citizens without first determining its suitability.

Damages

Plaintiffs sought treble damages for RICO violations as well as monetary and punitive damages, statutory damages, restitution, injunctive, and other equitable relief.

Result

The parties agreed to a settlement worth approximately $21.02 million.