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News > Companies
Prudential plan under fire
September 20, 1996: 10:16 a.m. ET

Seven states decide to oppose insurer's proposed $35 million settlement
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NEW YORK (CNNfn) -- Seven states have decided to fight Prudential Insurance Co.'s efforts to resolve a dispute over deceptive sales practices through a class-action settlement of lawsuits, a published report said Friday.
     Prudential wants to settle a band of lawsuits alleging that sales representatives had mislead policyholders through a practice known as "churning," or persuading existing policyholders to purchase more-expensive coverage that deflated the cash value of older policies. Up to now, a settlement appeared to be likely. But, according to the Wall Street Journal, Florida, Massachusetts, Texas and four other states have decided to oppose a class-action agreement.
     The states argue that a national settlement will not properly compensate their residents who purchased the Prudential policies.
     A Prudential spokesman declined to comment on the settlement talks.
     Massachusetts Attorney General Scott Harshbarger told the newspaper that "it has become obvious… (that Prudential) does not want to do what it right for policyholders."
     While seven states oppose a class-action settlement, 43 states and the District of Columbia have already agreed to a proposed $35 million remediation plan.Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

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Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.