The parties in an 11-year class action lawsuit announced yesterday that they had finally reached a proposed settlement.
Attorneys for the Savings Bank Life Insurance Company of Massachusetts and a group of policyholders jointly announced the proposed settlement of the case, which was preliminarily approved by Massachusetts Suffolk Superior Court Judge Margaret Hinkle.
The settlement, which must receive final court approval after a hearing set for May 20, would resolve a lawsuit that began in May 1998.
The suit was filed by policyholders who claimed that SBLI had underpaid annual dividends on their policies as well as special dividends required as a result of SBLI’s reorganization in 1992.
SBLI denied the accusations from the outset, arguing that the dividends it had paid were in line with its legal requirements. Under the settlement, SBLI admitted no liability.