5th Circ. Kills RICO Suit Over Aviva Insurance Tax Shelters

Law360, New York (September 10, 2012, 7:40 PM EDT) -- The Fifth Circuit on Friday affirmed a lower court's dismissal of a putative racketeering class action against Aviva Life and Annuity Co. over allegations that it improperly marketed a tax-free benefit plan without disclosing Internal Revenue Service concerns over its legality.

A group of plaintiffs who signed on to an Aviva tax-free benefit plan that was represented as a safe retirement vehicle said the insurer knew that the IRS had long-time doubts about similar arrangements, which the agency had labeled "abusive tax shelters," leaving Aviva in...
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