Pennsylvania Court Approves Conseco LTC Class Settlement

Additionally, the order states that the settling parties shall seek to dismiss two related California cases within 30 days of the order. The two cases are Larry Blau and Janet Blau v. American Travellers Life Insurance Company, et al., (Orange County Superior Court Case No. 00C03063), and Alva Lane and Linda Pequegnax v. American Travellers Life Insurance Company, et al. (San Diego Superior Court Case # GIF 746641.)

The court also enjoined and barred plaintiffs and settlement class members from bringing a class action on behalf of settlement class members or from seeking to certify a class based on released transactions.

It also awarded $4.5 million to plaintiffs’ attorneys.

The court’s opinion, among other points, noted that the plaintiffs would have difficulty in establishing liability and damages. It also noted that the lower, underpriced premiums paid and the protection offered under these policies “could negate some, if not all, damages incurred by the Class.” It continued, “additionally, if the [higher] rates were justified, the Plaintiffs would find it even more difficult to prove their claim of damages.”

Commenting on the order, Whiteley says the firm is pleased with the settlement.

Since the cases in California were essentially consolidated with the Milkman case, they would also be settled unless an appeal of the Philadelphia court’s decision is filed, she says.

As of April 8, there was no indication that an appeal was in the offing, Whiteley adds.

“We are pleased with the approval and look forward to implementing benefits that people have opted for,” says Mark Lubbers, a Conseco spokesman.

The American Association of Retired Persons, Washington, is still reviewing the court opinion and order and could not immediately comment, according to Deborah Zuckerman, an AARP attorney.

The Texas Attorney General’s office is disappointed with the order, says Tom Kelley, a spokesman for Texas Attorney General John Cornyn.

Kelley says the decision will not affect a Texas case currently being heard. The case, Texas vs. Conseco Senior Health Insurance Company (Judicial District Court, Travis County, Texas, GV102103), will be the focus of the Texas Attorney General’s office, he says.

The Texas AG’s office was one of the lead Attorneys General’s offices in a drive that resulted in 34 states signing an amicus brief counseling against the approval of the class action settlement.

Reproduced from National Underwriter Life & Health/Financial Services Edition, April 15, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.