MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, May 6, 2004 Cali Court Tosses UILIC Suit Against W&R The California Superior Court has thrown out a civil suit that alleged Waddell & Reed Financial had improperly advised variable annuity holds to convert their policies as part of a scheme to increase its commissions. The suit, which the court dismissed with prejudice, was filed by United Investors Life Insurance Company (UILIC), a subsidiary of Torchmark Corporation, in October 2001. Torchmark spun off Waddell & Reed in 1998 and after that time the brokerage firm began converting UILIC variable annuities to new variable annuities issued by Nationwide. Whether those conversions were proper turned into a legal battle in 2000. In March, UILIC won a judgment for 45 million in punitive damages in a similar suit brought in Alabama. Waddell & Reed has appealed in that case. UILIC has said that it plans to appeal the California ruling within a thirty-day window for appeals. Printed from: MFWire.com/story.asp?s=7151 Copyright 2004, InvestmentWires, Inc. All Rights Reserved |