Statement re Torchmark and Alabama Supreme Court Opinion
April 22 2003 - 3:02AM
UK Regulatory
Torchmark Corporation Announces Alabama Supreme Court Opinion in United
Investors Life vs. Waddell & Reed
BIRMINGHAM, Ala., April 22 -- Torchmark Corporation (NYSE: TMK) announced
today that the Alabama Supreme Court reversed in part and remanded in part the
$50 million verdict rendered by an Alabama jury in favor of Torchmark subsidiary
United Investors Life Insurance Company against Waddell & Reed last year. The
case involved claims by United that Waddell & Reed improperly engaged in a
concerted campaign to replace United's existing block of variable annuity
policies with policies issued by another insurance company and Waddell & Reed
wrongfully converted over $10,000,000 belonging to United. In a 51 page
opinion, the court found that conversion, breach of contract and one claim of
fraud and suppression were properly submitted to the jury; however, it held that
two claims, tortious interference with contractual relations and fraud in
connection with a promise by Waddell & Reed not to replace United's existing
variable annuity contracts should not have been submitted to the jury. Under
Alabama law, the finding by the court that two claims should not have been
submitted to the jury necessitates a remand to the trial court on the remaining
claims.
UILIC may file a petition for rehearing with the Supreme Court and plans
to pursue in the trial court its claims for concealment, breach of contract,
fraud and suppression, with claims for actual damages over $10 million and for
punitive damages of up to three times that amount under Alabama law. The
earlier verdict of $50 million did not include an award of punitive damages.
Torchmark Corporation is a financial services holding company specializing
in life and supplemental health insurance for "middle income" Americans
marketed through multiple distribution channels including direct response, and
exclusive and independent agencies. Subsidiary Globe Life And Accident is a
nationally recognized direct-response provider of life insurance known for its
administrative efficiencies. United American has been a nationally recognized
provider of Medicare supplement health insurance since 1966. Liberty National
Life, one of the oldest traditional life insurers in the Southeast, is the
largest life insurer in its home state of Alabama. American Income Life is
nationally recognized for providing supplemental life insurance to labor union
members.
SOURCE Torchmark Corporation
-0- 04/22/2003
/CONTACT: Joyce Lane, Vice President, Investor Relations of Torchmark
Corporation, +1-972-569-3627, or fax, +1-972-569-3696, or
jlane@torchmarkcorp.com /
/Company News On-Call: http://www.prnewswire.com/comp/885425.html /
/Web site: http://www.torchmarkcorp.com /
(TMK)
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