NEWARK (CN) - A federal class action claims Prudential Insurance refuses to pay lump-sum death benefits, but invests the money "in a manner which it does not disclose" to "make an undisclosed profit from earnings thereon during the period of delay." Plaintiffs say the industry calls this common scam "the 'Checkbook Instead of a Check' program."
Plaintiffs seek disgorgement, with interest, and an injunction. They estimate more than $5 million in damages. They are represented by Allyn Lite.
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