Lawsuit: Consumers Conned out of Investment Funds

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United of Omaha Life Insurance Company is facing claims that it violated federal law by breaching its fiduciary duties to participants in its investment plans. The suit alleges that the insurance company offers guaranteed investment accounts bound by unlawful contracts. The contracts purportedly fail to specify a minimum rate of return, allow the defendant to change the interest rate at any time, and reserve the right to terminate the accounts – on top of other restrictions named in the lawsuit. From the complaint:

“Discovery will show that during the relevant time period, United of Omaha made and retained millions of dollars annually from ERISA defined contribution retirement plans’ investments in the Guaranteed Account, and the amounts credited to the plans were consistently dwarfed by United of Omaha’s investment returns. In other words, United of Omaha retained excessive compensation at the expense of plan participants.”