Litigation

Structured Settlement Fraud and Racketeering Case May Proceed As Class Action

By John Darer

Connecticut Federal Judge Janet C. Hall  has ruled that the Spencer v. Hartford case may proceed as a national class action under alleged fraud and federal racketeering violations, but not on two additional claims for unjust enrichment and breach of contract.

The 2005 lawsuit alleges deceptive practices in which The Hartford allegedly gave people written statements of the cost or value of their structured settlement or annuity without indicating the company would take at least 15 percent of the amount for various fees, taxes, and profit.

While it is believed that such practices no longer take place, Hartford's structured settlement program has traditionally had the prerogative to offer plaintiffs who seek a structured settlement no choice but to place the structured settlements with its Hartford Life Insurance Company subsidiary, whether or not it was competitive. The practice held through last fall's financial crisis. There has been no word from Hartford as to whether the recent rating downgrades have affected the program.

Full post as published by Structured Settlements 4Real on March 13, 2009 (boomark / email).