Finance & Insurance Litigation
Big banks and insurance companies have been at the center of some of the biggest corporate scandals in recent decades. Banks and insurers are in the business of making money. In fact, big banks and public insurance firms are obligated, by their corporate charters, to put shareholders’ interests ahead of their clients’ interests. That doesn’t mean, however, that they can deceive clients in order to profit at their expense. The government may have decided in 2008 that big banks and insurance companies are “too big to fail.” But they are not too big to commit fraud without recourse.
For over five decades, Milberg has spearheaded litigation challenging unethical practices by some of the biggest financial and insurance institutions in the world. Our attorneys have been at the cutting edge of cases that directly impacted large banks, lenders, and insurers, and proved that no company is too powerful to avoid legal consequences when they act irresponsibly.
Milberg’s attorneys have the tools necessary to fight on behalf of plaintiffs wronged by corporate malfeasance. As a result of the diverse experience and backgrounds of our attorneys in these fields, we possess a depth of knowledge of the inner workings of the financial and insurance industries. Throughout our history, Milberg has consistently adapted to the evolving changes in financial services and insurance markets as both industries have grown more complex.
Milberg led numerous class actions in the 1990s and early 2000s against insurance companies selling whole and universal life insurance policies based on misrepresentations about the expected performance of those policies. We also led dozens of sales cases that collectively settled for more than ten billion dollars. These cases, which changed the way insurance is sold, were cited in model regulations of the National Association of Insurance Commissioners designed to prevent the recurrence of those practices. As a direct result of our litigation, the insurers were forced to stop making false promises about premium payments, to stop charging higher prices to minorities, and to stop churning policies to accumulate additional sales.
Some of Milberg’s noteworthy results and precedent-setting decisions include:
- $16.65 Billion Settlement: Milberg was part of the team that secured a $16.65 billion global settlement—the largest civil settlement with a single entity in American history—from Bank of America after it was alleged that BoA improperly recouped insurance proceeds from the United States Department of Housing and Urban Development.
- $4 Billion Settlement: Serving as lead counsel, Milberg recovered more than $4 billion for certain policyholders in this landmark case challenging Prudential’s insurance sales practices.
- $1.7 Billion Settlement: Milberg represented millions of MetLife policyholders who alleged that the insurer used deceptive sales practices for the purpose of generating additional, and unnecessary, commissions.
- $85 Million Settlement: Milberg successfully secured an $85 million settlement from Medline Industries, Inc. after it was alleged that the company participated in unlawful kickbacks, bribes, and other illegal methods to induce healthcare providers to continue to purchase the defendant’s medical supplies.
- $45 MIllion Settlement: Milberg was lead counsel in a lawsuit that accused the Life Insurance Company of Georgia of routinely charging blacks customers higher life insurance premiums than white customers. In addition to a class action settlement worth millions, the lawsuit helped put an end to discriminatory insurance practices.
- $59 Million Settlement: Milberg attorneys represented MetLife policyholders who claimed that the insurance company breached its contract and engaged in other misconduct by selling long term care policies with a “Reduced-Pay at 65” option and then increasing the premium after the age of 65.
Insurance Bad Faith
You purchase insurance and pay monthly premiums to protect your home, property, and assets in the event that they’re damaged or destroyed by a covered event. Insurance is supposed to keep you from suffering catastrophic financial losses. But all too often, the insurance company shows more concern for their bottom line than for their customers by overcharging for premiums, delaying claims, or denying them altogether.
When insurance companies engage in bad faith practices, they may be subject to legal action. Milberg uses its skills and experience litigating against insurance companies to help policyholders recover the payments they are entitled to under their policies. Some of the most common reasons why insurance providers are sued for acting in bad faith include:
- Raising premiums or assessing fees in breach of the policy’s terms
- Offering the policyholder a settlement worth significantly less than what their claim is actually worth
- Not disclosing policy limits
- Claiming the policy does not cover certain damages when it does
- Failing to investigate, pay, or deny a claim within a reasonable time frame
- Failing to respond to a time limit demand
- Denying a claim without without a just reason
- Not performing a complete or timely claim investigation
- Failing to communicate crucial information to the claimant
- Failure to enter into any type of claim settlement negotiations
Milberg’s attorneys have handled hundreds of insurance related disputes, including first party bad faith insurance cases, business interruption cases, and hurricane insurance cases. Our attorneys have also lectured, written, and taught continuing legal education courses on insurance-related topics. As one of the nation’s top class action law firms, we are well-positioned to pursue insurance bad faith cases on a statewide or nationwide basis.
If you believe your insurance company wrongfully denied, delayed, or limited a legitimate claim, Milberg can help you understand your legal options and pursue compensation. Contact us to schedule a free consultation.