Confidential
Settlement – $95,500,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Kenneth R. Chiate
(Quinn, Emanuel, Urquhart & Sullivan LLP)
Defendant
Martin E. Rosen
(Hinshaw & Culbertson LLP)
Edith S. Shea
(Burke, Williams & Sorensen LLP)
Experts
Plaintiff
John Cressman
(technical)
Thomas Tierney
(technical)
Renwick Nelson
(technical)
Facts
The plaintiffs asserted claims for unfair/fraudulent business practices under Section 17200 of the
California Business and Professions Code (UCL) and common law fraud in a national class
action on behalf of approximately 100,000 policyholders who had purchased universal life
policies from the defendant throughout the United States against defendant insurance company
and its agent. The Superior Court issued an order certifying a class action for unfair/fraudulent
business practices under the UCL, but denied a class for common law fraud (writ pending).
Settlement Discussions
The case settled for a benefit package of cash and noncash components with a potential value of $95.5 million. The actual value of the settlement will depend upon the number of class members submitting claims and the nature of the proof submitted. The defendants also agreed not to oppose an award of attorney fees and costs in the amount of $14.5 million. On Feb. 28, 2002, the court approved the class settlement and approved an award of $14.5 million in fees and costs to class counsel.
Other Information
PLEASE PROVIDE THE CITY OF LOCALE AND EXPERTISE OF EXPERTS: John Cressman ________, _________; Renwick Nelson ________, _________; Thomas Tierney ________, __________
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