Prudential Dodges Improper Investment Class Action

Law360, New York (November 29, 2011, 4:07 PM EST) -- An Illinois federal judge on Monday dismissed a putative class action against The Prudential Insurance Co. of America, ruling that the insurer did not breach life insurance contracts by holding insurance payouts in interest-bearing accounts without disclosing the accounts' full profits to beneficiaries.

Plaintiff Zena Phillips, a beneficiary of a life insurance policy issued on behalf of her deceased fiance Michael S. Strang, alleged that the insurer breached the insurance policy and a fiduciary duty created by its investment of the funds. She had sought to...
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