Facts

A class action lawsuit was filed against Great American Life Insurance Co. after certain deferred annuity products were sold to different individuals.

PLAINTIFFS' CONTENTIONS: Great American violated Business and Professions Code Section 17200 (the Unfair Competition Law). In addition, Great American violated California Welfare & Institutions Code Section 15600, also known as the Elder Abuse Statute. Further, with regard to multiple contracts it issued out to persons above the age of 60, surrender charges were not disclosed properly on the face page of said contracts, or the "free look" Insurance Code disclosure.

DEFENDANT'S CONTENTIONS: Great American contended that the allegations against it were false. The annuity products it issues are lawful, and further, that the plaintiffs received notice regarding surrender charges adequately. Further, the allegations against Great American aren't sustainable under law, nor did the plaintiffs state a cause of action. At trial, the plaintiffs would not be able to prove the elements as to their causes of action. A motion for summary judgment was filed by Great American. The parties subsequently mediated the dispute.

Result

The parties settled during mediation for $1,347,323.