NASCAR champion Kyle Busch's lawsuit against Pacific Life alleging $8.6 million in losses tied to indexed universal life insurance policies has been moved to federal court in North Carolina.
In a complaint filed in North Carolina Superior Court in Lincoln County in October, Busch and his wife, Samantha, accuse Pacific Life and an agent of promoting complex IUL policies as "tax-free retirement plans" that were misrepresented as safe, self-funding investment vehicles.
Court records show the case was moved to U.S. district court in the state's western district last week. Pacific Life, noting that parties reside in different states, filed the notice to remove the case to federal jurisdiction.
In addition to recouping nearly $8.6 million in out-of-pocket losses, the Busches seek punitive and triple damages.
The Busches have warned the public to avoid what the race car driver describes as a devastating financial scheme, according to the law firm representing them, RP Legal. Their story "underscores the growing national crisis of families, retirees and professionals misled into believing IUL products provide safe, tax-free retirement income," the firm said in a statement.
The defendants used misleading illustrations, undisclosed costs and false promises of guaranteed multipliers and controllable charges to induce the Busches to pay more than $10.4 million in premiums, the firm said, citing the complaint.
A Pacific Life spokesperson said in a statement shared Tuesday:
"At Pacific Life, our business has been built on providing valuable insurance products to help millions of families and businesses plan for their future financial security. We take the concerns raised by Kyle and Samantha Busch seriously, and have been in touch with the Busches and their legal team.
"We stand by all our life insurance products, including Indexed Universal Life (IUL). An IUL policy provides valuable life insurance protection, helping ensure that families and other beneficiaries receive financial protection in the event of an unexpected or premature death of a loved one. IUL also offers the opportunity to build cash value over time, which may be accessed for a variety of purposes, including supplementing retirement income.
"It is important that individuals work with their financial professionals to help ensure their intended insurance needs and financial objectives are met."
Credit: Matt Kelley/AP Images
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