National Western Agrees To Pay $21M In RICO Suit

Law360, New York (October 16, 2013, 2:05 PM EDT) -- National Western Life Insurance Co. on Tuesday agreed to a $21 million settlement that resolves a Racketeer Influenced and Corrupt Organizations Act class action alleging it fraudulently marketed costly and poorly performing deferred annuities to the elderly.

The plaintiffs had alleged that National Western utilized a network of affiliated sales agents to push the bad annuities, which also came with with onerous surrender penalties. They said National Western misrepresented and otherwise failed to disclose to senior consumers material facts concerning the costs associated with its annuities,...
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