Veterans' families suit against Prudential advances

Veterans' families' suit against Prudential advances
Published: Thursday, April 28, 2011
By Stephanie Barry, The Republican

SPRINGFIELD – A lawsuit brought by 10 veterans’ families across the country who allege they were cheated by an insurance giant advanced in a federal court in Springfield on Wednesday.

U.S. District Judge Michael A. Ponsor, who is taking senior, or semi-retired status in August, set a schedule stretching into next year for lawyers for Prudential Insurance Company of America to recover documents dating back to the 1990s stating the policies for paying death benefits to families of fallen soldiers.

The lead plaintiff is Kevin Lucey, of Belchertown, father of a soldier who committed suicide in 2004 when he returned from Iraq. Lucey has been joined by others similarly situated across the nation.

Lawyers for the plaintiffs on Wednesday said that there are potentially 60,000 who may join in the suit to recoup $850 million they allege the insurance company misused by paying woefully low interest rates and holding back lump sum payouts in favor of investing the money.

“They’re investing it in anything they want, to do anything they want,” said plaintiffs’ lawyer, Daniel King, of Austin, Texas.

The lawsuit claims Prudential reaped more than $100 million by collecting 5.7 percent on interest on deferred policy payments while paying out only 1 percent to families.
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Veterans' families' suit against Prudential advances