Federal District Judge Upholds Patent Judgment in Favor of Lincoln Financial Group
June 25 2009 - 2:00PM
PR Newswire (US)
PHILADELPHIA, June 25 /PRNewswire-FirstCall/ -- Lincoln Financial
Group (NYSE:LNC) announced the Federal District Court in Iowa
validated a jury's decision to render a verdict in favor of Lincoln
National Life Insurance Company in a patent infringement lawsuit
against Transamerica Life Insurance Company and related Aegon USA
companies. The judge in the case held that reasonable grounds
supported the jury's verdict that Lincoln's '201 patent was not
invalid, that Transamerica infringed and determination that an
appropriate damages award for Transamerica's infringement was $13.1
million. In addition, the judge entered an injunction against
Transamerica enjoining the companies from using a computer to
administer new or existing riders in any infringing manner. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050830/LFLOGO ) The patent
claims at issue in the Transamerica case relate to a computerized
method for administering variable annuity products that combine
guaranteed minimum payment features with systematic withdrawal
programs. Transamerica has started an appeal to the Federal Circuit
Court of Appeals. Transamerica also filed what it labeled an
"emergency" motion asking that the permanent injunction be delayed
during the appeal, but the Federal Circuit denied Transamerica's
emergency motion. The appeal and motion are currently being
considered by the Federal Court. In February of 2009, a jury
rendered a verdict in favor of Lincoln National Life Insurance
Company and against three Aegon USA companies: Transamerica Life
Insurance Co., Transamerica Financial Life Insurance Co., and
Western Reserve Life Assurance Co. of Ohio. "We are pleased that
the Federal District Judge in Iowa validated the jury's verdict,
confirming the validity of our '201 patent," said Rob Grubka, Head
of Product, Retirement Solutions, Lincoln Financial Group. "We are
dedicated to providing innovative insurance and retirement
solutions that help customers secure their financial futures. We
regard our patents and product solutions as valuable assets and we
intend to vigorously protect our intellectual property against
infringement." Lincoln filed its first patent for administering
income guarantees in 1998. Guarantees are backed by the
claims-paying ability of the appropriate issuing company. About
Variable Annuities Variable annuities are long-term retirement
planning vehicles that can offer tax deferral, a lifetime income
and death benefits to help meet financial needs and goals. Tax
deferral allows any investment gains to grow with no taxes due
until withdrawal. The values will fluctuate in accordance with the
performance of the investments and when withdrawn, may be worth
more or less than the original cost. Withdrawals may be subject to
surrender charges and to ordinary income tax along with withdrawals
prior to age 59 1/2, a 10% IRS penalty may also apply. An investor
should carefully consider the investment objectives, risks, charges
and expenses of the variable annuity and its underlying investment
options before investing. The product prospectus and underlying
fund prospectus contain this and other important information and
should be read carefully. Investors should request a prospectus
from their registered representative. Variable annuity contracts
are issued by The Lincoln National Life Insurance Company, Fort
Wayne, IN, distributed by Lincoln Financial Distributors, Inc., and
offered by broker dealers who have selling agreements. The Lincoln
National Life Insurance Company is not authorized in, and does not
solicit business in, the State of New York. For residents of New
York, variable annuity contracts are issued by Lincoln Life &
Annuity Company of New York, Syracuse, NY, distributed by Lincoln
Financial Distributors, Inc., and are offered by broker dealers who
have selling agreements. The Lincoln National Life Insurance
Company and Lincoln Life & Annuity Company of New York are
independently responsible for their own contractual and financial
obligations. Products and features are subject to state
availability. Lincoln Financial Group Lincoln Financial Group is
the marketing name for Lincoln National Corporation (NYSE:LNC) and
its affiliates. With headquarters in the Philadelphia region, the
companies of Lincoln Financial Group had assets under management of
$171 billion as of March 31, 2009. Through its affiliated
companies, Lincoln Financial Group offers: annuities; life, group
life and disability insurance; 401(k) and 403(b) plans; savings
plans; mutual funds; managed accounts; institutional investments;
and comprehensive financial planning and advisory services.
Affiliates also include: Delaware Investments, the marketing name
for Delaware Management Holdings, Inc. and its subsidiaries; and
Lincoln UK. For more information, including a copy of our most
recent SEC reports containing our balance sheets, please visit
http://www.lincolnfinancial.com/.
http://www.newscom.com/cgi-bin/prnh/20050830/LFLOGO
http://photoarchive.ap.org/ DATASOURCE: Lincoln Financial Group
CONTACT: Investor Relations, Jim Sjoreen, +1-484-583-1420, , or
Media Relations, Laurel O'Brien, +1-484-583-1735, , both of Lincoln
Financial Group Web Site: http://www.lfg.com/
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