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Insurance
Bad Faith
Health Insurance

Beverly Clark, Jesse J. Paul, Warren Gold, Marc H. Litwack, Linda M. Cusanelli, Carole Walcher, and Terri Drogell v. Prudential Life Insurance Company of America

Published: May 11, 2013 | Result Date: Apr. 18, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 2:08-cv-06197-DRD-MF Bench Decision –  Class Certification Denied

Facts

Lead plaintiff Beverly Clark sued Prudential Life Insurance Co. of America alleging deception, bad faith, and violation of California's Unfair Competition Law for "closing the block," that is, Prudential stopped selling a certain health insurance policy to new customers so as to unlawfully increase premiums. The plaintiffs claimed that when healthy policyholders left, the sick were locked into the increasingly costly policy and locked out of other options due to their pre-existing condition.

Result

U.S. District Judge Dickinson Debevoise denied class certification, and partially granted Prudential's motion of summary judgment based on the statute of limitations. The judge further refused to reconsider or to redefine the class to be certified solely for purposes of liability, not damages.


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