Manulife Shareholders Threaten Class-Action Lawsuit

by LAS

The shareholders of Manulife Financial have proposed a class-action lawsuit against the executives of the firm. They charge that the execs made “false and misleading statements” about the company's risk management ability. The shareholders equate this with violating federal securities laws.

The proposal was filed with the US District Court for the Southern District of New York. Manulife has responded by saying that its financial disclosure met all legal requirements and that these issues have nothing to do with policyholders or company products.

The Canadian regulators responded first, with the Ontario Securities Commissioner issuing a statement in June. In that response, Canada's preliminary conclusion was that the company did not meet its obligation to disclose regarding market risk in its variable annuity products and segregated funds.

Geez, why is it so clear to the Canadians that Manulife was playing fast and loose with the law? Will there be any justice for the American shareholders? And why is it so difficult for Manulife to do right in the first place?

Are Agents Employees or Independent Contractors?

by L.A.S.
Three former agents for Northwestern Mutual Life Insurance Company sued NML in a class-action lawsuit. They claimed that they were wrongfully designated independent contractors, and denied minimum wage, overtime, and other benefits.
The lawsuit is for $200 million.
It has been traditional that agents for almost all insurance companies are independent contractors who receive only commission for whatever they sell. I can tell you now that these agents would have to prove that NML closely supervised and controlled their hours and other details of their work.