Connecticut General Life Insurance Co. and Lincoln National Life Insurance Co. have secured final court approval for a $147 million settlement in a nine-year class action lawsuit alleging breach of cost of insurance policy provisions. Judge Michael P. Shea of the US District Court for the District of Connecticut rejected an objection to the settlement filed by law firm Susman Godfrey LLP. The firm, representing multiple objectors, argued that the class representatives lacked standing to represent policies issued by Lincoln Life & Annuity Company of New York and First Penn-Pacific Life Insurance Co. The court overruled this objection, paving the way for the settlement to take effect.
The settlement brings to a close a protracted legal battle that has been ongoing since its inception nine years ago. The class action alleged that the insurance companies violated the terms of their insurance policies regarding the cost of insurance provisions. With the court’s approval, the parties have reached a conclusive resolution, although specific details of the settlement distribution remain to be implemented.
This case highlights the complexities and challenges inherent in class action litigation, particularly when multiple subsidiaries and policy types are involved. The court’s decision to approve the settlement despite objections demonstrates the legal system’s balancing act between ensuring fair representation for all class members and bringing lengthy legal disputes to a resolution.
