LSW Sued in IUL Pyramid Sales Scheme (Class Action Certified)

This case has been out there for a few years and for whatever reason, the normal trade publications haven’t really written about it. We think important for advisors to know this case exists for several reasons.

There were multiple lawsuits filed against the parties in more than one state. These cases were consolidated and put together in the class action lawsuit.

To read the complaint for the amended class action lawsuit, click here (the class was certified at the end of 2021).

To read the Order from the Federal Court certifying the Class Action, click here (it’s an interesting read).

To read one of the original complaints from 2019, click here. It is a bit different than the amended complaint. On page 12 paragraph 60 it states that the Living Life IUL offered by LSW is “far more expensive” then other LSW IUL products. I don’t know why that was removed from the Amended Complaint.

What can be learned from this Class Action Lawsuit?

  • It’s not a good idea to get involved in pyramid schemes!
  • It’s not good business to take advantage of people who are vulnerable!
  • It’s not good business to work with an insurance company you can’t trust!
  • It’s not good business to work with an IMO you can’t trust!
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