'Death Spiral' Class Action Against Prudential Survives

Law360, New York (September 13, 2010, 1:13 PM EDT) -- A federal judge has upheld much of a putative class action accusing Prudential Insurance Co. of America of defrauding policyholders by failing to inform them that their health insurance had entered a “death spiral” that would drive up premiums.

Claims that Prudential fraudulently misrepresented its plans and violated California consumer law are strong enough to survive Prudential's early motion to dismiss, Judge Dickinson R. Debevoise of the U.S. District Court for the District of New Jersey ruled Thursday in a published 62-page opinion.

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