$2.4 million settlement in RICO, Breach of Contract and Fraud case
VERDICTS AND SETTLEMENTS FORM
Type of Action: Consumer Class Action
Injuries Alleged: Payment of premiums for accidental death insurance
Name of Case: Theresa McClain vs. Coverdell & Company et al
Court/County/Case No.: United States District Court, Eastern District of Michigan, Case No. 00- 71881
Name of Judge: Hon. Arthur Tarnow
Jury Demand? Yes
Damages Awarded/Amount of Settlement: Settlement valued at $2.6 million
Date of Award/Settlement: Judgment dated November 22, 2004
Trial Verdict or Settlement: Settlement
Attorney for Plaintiff: E. Powell Miller, Marc L. Newman
Attorney for Defendants: James David Brown, Scott S. Crocker, Winstead Sechrest & Minick, P.C.
5400 Renaissance Tower, 1201 Elm Street, Dallas, TX 75720
Plaintiff asserted claims on behalf of a class of people who were sold accidental death insurance through a telemarketing program to various bank customers. Plaintiff alleged that after receiving name and account numbers of bank customers, the telemarketing firms made telephone solicitations in which they made a number of false and deceptive claims about the insurance and the nature of the transactions, an failed to disclose other material information. The telemarketers also allegedly falsely represented to be calling on behalf of the bank. Premiums were thereafter withdrawn by electronic transfers, without clear written disclosures or written consent. Defendants agreed to refund class members up to five months of premiums paid and other monetary benefits to provide a clear disclosure to ongoing policy holders, and to changes in telemarketing practices.