EquiTrust Life Insurance Company Lawsuits – Allegations of Annuity Fraud

EquiTrust Life Insurance Company has faced multiple lawsuits in recent years over allegations of deceptive sales practices and fraud involving its indexed annuities. Plaintiffs accuse the company of misleading senior citizens into buying unsuitable annuities that failed to provide the benefits promised.

Below we’ll examine the allegations against EquiTrust, key lawsuits, potential compensation for victims, and how to file a claim if you were misled by an EquiTrust annuity salesperson.

About EquiTrust Life Insurance Company

EquiTrust Life Insurance Company provides annuities, life insurance, and other financial products. It is based in West Des Moines, Iowa and has been in business since 1936.

In 2011, EquiTrust was acquired by private equity firm Guggenheim Partners. Today it has over $19 billion in assets and 400,000 policyholders.

EquiTrust sells its annuities and life insurance policies through independent broker-dealers and financial advisors across the U.S.

Lawsuits Over EquiTrust’s Indexed Annuities

EquiTrust has faced multiple lawsuits alleging deception and fraud in the sale of its indexed annuities to senior citizens and retirees.

Key allegations made against EquiTrust include:

• Misrepresenting annuity features like bonus rates, surrender charges, and market value adjustments
• Failing to adequately disclose risks and drawbacks of annuities
• Using deceptive sales tactics and misleading illustrations to induce seniors to buy unsuitable products
• Charging excessive fees that eat away at annuity returns

Plaintiffs assert EquiTrust annuities were intentionally designed to benefit the company and agents at the expense of senior purchasers through high commissions and complex terms that reduced payouts.

Below are details on major lawsuits filed against EquiTrust Life Insurance Company over its indexed annuities.

California Class Action Lawsuit

In 2008, a class action lawsuit was filed in California federal court accusing EquiTrust of fraud, breach of contract, and violations of the Unfair Competition Law and Consumers Legal Remedies Act related to its annuity sales practices.

The complaint alleged EquiTrust misled consumers about annuity features like bonus rates, interest rates, and surrender penalties. It sought recovery on behalf of California purchasers of EquiTrust annuities.

In 2011, a federal judge certified portions of the lawsuit to proceed as a class action. However, in 2015 an appeals court overturned the class certification, finding the plaintiffs failed to show sufficient common evidence of misrepresentations across consumers.

Tabares v. EquiTrust Life Insurance

In this 2014 case filed in California, plaintiffs alleged EquiTrust annuities offered “illusory” bonus rates that were largely erased by other fees and penalties.

They accused EquiTrust of violating California’s Unfair Competition Law, False Advertising Law, Consumers Legal Remedies Act, and laws regulating annuity sales to seniors.

An appeals court upheld summary judgment in favor of EquiTrust in 2015. But the case highlighted allegations of systemic problems with EquiTrust’s annuity products and sales system.

Arizona Federal Class Action

A class action lawsuit filed in Arizona accused EquiTrust of fraud, consumer fraud, unjust enrichment, and other violations related to sales of its indexed annuities to a nationwide class.

The case centered on allegations EquiTrust falsely advertised annuity returns using hypothetical projected gains. A federal judge initially certified the class before later reversing the decision on appeal in 2018.

These and other lawsuits contained consistent allegations that EquiTrust annuities were intentionally designed and marketed to mislead consumers. While class certification was overturned in two cases, individual actions remain possible.

Damages Sought in EquiTrust Lawsuits

The various lawsuits against EquiTrust Life Insurance sought recovery on behalf of all purchasers of the company’s allegedly fraudulent annuities. This included:

• Return of all premiums paid, fees, and costs associated with the annuities
• Prejudgment interest
• Punitive and exemplary damages

While major class actions failed, victims may still be able to recover compensation through individual litigation or arbitration claims against EquiTrust.

An attorney can evaluate your case and help determine fair damages if you were harmed by an EquiTrust annuity.

How to File an EquiTrust Annuity Lawsuit

If you purchased an EquiTrust fixed or indexed annuity and believe you were misled or deceived about the product, here are steps to take:

• Consult an annuity fraud attorney – Have an attorney review your annuity documents to assess if sales violations occurred. They can evaluate potential claims.

• Request a case evaluation – Reputable attorneys provide free case consultations to examine your annuity purchase and recommend legal options.

• File a claim – If you have grounds for a case, the attorney can handle your lawsuit or arbitration claim seeking damages from EquiTrust. Many work on a contingency fee basis.

• Consider joining a class action – If future class actions are filed against EquiTrust over its annuities, you may be able to join as a plaintiff.

Victims of annuity fraud have legal rights to pursue compensation. An experienced attorney can protect your interests and deal with EquiTrust and their legal team.

Get Legal Help for Suspicious EquiTrust Annuity Sales

EquiTrust Life Insurance Company continues to face backlash over potentially fraudulent practices in the marketing and sale of its indexed annuities to senior citizens. If you were misled into buying an EquiTrust annuity, contact a reputable annuity fraud law firm to explore your options.

Financial advisors have legal duties to recommend suitable products free of misrepresentations. You may be entitled to a return of annuity premiums, fees paid, interest, and additional damages where sales violations occurred. Speak to an attorney soon about investigating your case.