Court throws out award in Executive Life case

A $241 million award given to the state regarding its takeover of the now-defunct Executive Life Insurance has been overturned.
AUG 26, 2008
A California federal appeals court has overturned a $241 million award given to the state in a lawsuit arising from its 1991 takeover of the now-defunct Executive Life Insurance Co. A district court retrial of the damages phase has also been ordered. A 2000 lawsuit by California’s insurance commissioner Steve Poizner had accused Artemis SA, a Paris-based holding company, of plotting to dodge state and federal laws to purchase the failed insurer’s junk bond portfolio and other assets in a state sale of Executive Life in 1991. Artemis was added to a list of other parties in a pre-existing suit. Other defendants named in the case included Credit Lyonnais of Paris, which is controlled by the French government, and other individuals and entities. They paid $700 million to settle the case. A federal jury in Los Angeles also found Artemis liable for conspiring to commit fraud in 2005 and awarded the state $700 million in punitive damages, but no compensatory damages. That award was later tossed, and Artemis was ordered to pay the $241 million, which Judge Jay Bybee said should be reconsidered.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income