What is this lawsuit about?

The class action lawsuit alleges that Defendant breached its contracts with certain policy owners. The at-issue policies contain provisions stating that “Cost of insurance rates are determined by the Company based on its expectations as to future mortality experience, and a portion of such cost of insurance rates may represent a recovery of expenses associated with the administration of the policy; such recovery may be greater in the early policy years." Plaintiff alleges that Defendant breached these contractual provisions because Defendant imposed cost of insurance ("COI") charges that were not based on its expectations as to future mortality experience, and that Plaintiff and members of the Class have been damaged, as a result. Defendant denies Plaintiff’s claims and asserts multiple defenses, including that Defendant’s challenged actions are lawful and justified.

On March 31, 2022, the United States District Court for the Southern District of New York granted Plaintiff’s motion for class certification for breach of contract against Defendant. The Court’s order certifying the Class does not predict or guarantee that Class Members will receive any money or benefits; that will be decided later. In certifying this lawsuit as a class action, the Court has made no decision as to the merits of the Plaintiff’s legal claims or Defendant’s defenses.

Who is included?

The Class consists of all current and former owners of universal life insurance policies issued by Lincoln Life & Annuity Company of New York with the marketing names SUL I (New York), SUL IV (New York), UL I (New York), UL II (New York), UL III (New York), and UL LPR (New York) that were assessed a COI charge at any time on or after June 27, 2013. The Class does not include policy numbers 7143647, 7150005, 7150984, 7155997, 7163495, and 7163710.

What happens if I do nothing and remain in the Class?

If you remain in the Class and Plaintiff obtains money or other value from this lawsuit—either as a result of any ruling, trial or Court approved settlement—you may receive a payment, if you are entitled to one. Keep in mind that if you do nothing now, regardless of whether Plaintiff wins or loses, you will be legally bound by all Court orders and judgments made in this class action and you will not be able to maintain a separate lawsuit against Defendant for the same legal claims that are the subject of this lawsuit.