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College Life Reaches Settlement in Laredo Class Action
 
  College Life Insurance Company of America (now named Americo Financial Life and Annuity Insurance Company) announced the settlement of a class action lawsuit affecting approximately 100,000 teachers and other school district employees, most of whom are in Texas and California. The suit, filed by a group of teachers in Laredo, Texas, is subject to court approval on January 25, 2002, and involves annuities and life insurance policies sold as part of Section 403(b) plans.
 
The proposed settlement includes General Policy Relief of free accidental death benefits or product transfers, a Claim Resolution Process for policyholders with complaints about the product they purchased or the manner in which it was marketed, and some agreed modifications to certain marketing practices.
 
The suit was filed on July 2, 1999 in the 111th District Court of Webb County, Texas, and named College Life, affiliated companies, marketing companies, officers, directors, and two Laredo school districts as Defendants. The parties have been in settlement negotiations for nearly a year, when a settlement was announced and preliminarily approved by Judge Mario Vasquez on October 9, 2001. Notice of the proposed settlement was mailed to class members beginning November 19, 2001.
 
Lead Counsel for the Class, G. Wade Caldwell of San Antonio based Martin, Drought & Torres, Inc., commented on the settlement as follows: "We are very pleased with the structure of the settlement and believe it addresses the complaints made by our clients and the other Class Members."
 
College Life's lead counsel, Edwin R. DeYoung of the Dallas office of Locke Liddell & Sapp LLP, responded to the settlement by stating: "We believe this proposed settlement provides a reasonable resolution of this dispute for College Life and others concerned."
 
For further information, please contact: Edwin R. DeYoung, lead counsel for College Life, at 214-740-8500, or G. Wade Caldwell, lead counsel for the Class, at 210-220-1323.
 
 

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