Amendment to Stipulation of Settlement in Prudential Insurance Sales Practices Litigation

Summary

This amendment updates the settlement agreement between The Prudential Insurance Company of America, individual defendants, and plaintiffs representing a class in a sales practices litigation. It extends certain additional remedies and procedural benefits, originally agreed upon for class members in California, Florida, Massachusetts, and Texas, to all class members. Key changes include revised definitions, updated refund calculations, new evidentiary considerations, and additional information rights for claimants. The amendment is effective as of February 22, 1997, and is approved by all parties involved.

EX-10.3 5 dex103.txt AMENDMENT TO STIPULATION OF SETTLEMENT EXHIBIT 10.3 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY - -------------------------------------- : MASTER DOCKET NO. 95-4704 (AMW) IN RE THE PRUDENTIAL INSURANCE COMPANY OF AMERICA : MDL NO. 1061 SALES PRACTICES LITIGATION : - -------------------------------------- : THIS DOCUMENT RELATES TO: ALL ACTIONS LISTED ON : EXHIBIT A : - -------------------------------------- AMENDMENT TO STIPULATION OF SETTLEMENT 1. WHEREAS, Prudential has agreed with the states of California, Florida, Massachusetts and Texas to provide certain additional remedies and procedural advantages in the ADR Process to Class Members within their respective jurisdictions; and 2. WHEREAS, the Plaintiffs and Defendants have agreed to extend such benefits to all Class Members; IT IS HEREBY STIPULATED AND AGREED, by, between and among Plaintiffs (individually and in their respective capacities as representatives of the Class) and The Prudential Insurance Company of America, and the Individual Defendants, that the Stipulation of Settlement, executed on or around October 28, 1996, be and hereby is amended as follows: 1. Section I.C. of Exhibit B is amended to state: "'Complaint History' shall mean, with respect to any Agent, that such Agent has had prior to February 1, 1997, three (3) or more sales practices-related complaints (documented in the Company's files)." 2. The relief offered for scores of "2" as set forth in sections II.C.1.b.(ii), II.C.2.b.(ii), II.C.3.b.(ii), II.C.4.b.(ii), II.C.5.b.(ii), III.C.2.b., III.C.6.b., IV.C.2.a., and IV.B.2.a. of Exhibit B to the Stipulation of Settlement, where the remedy includes a rescission of the Policy and a refund of premiums, shall be amended to read as follows: "the Company will rescind the Policy as of the date of issue and will refund in cash an amount equal to the premiums paid on the Policy, less cash withdrawals, surrenders, loans and/or dividends paid in cash or used to reduce premiums on the Policy, and less Term Insurance Costs, plus interest at 100% of the Interest Rate." 3. The following new Non-Specific Evidentiary Consideration shall be added to Exhibit B to the Settlement (ADR Guidelines) as subsection I.F.1.h.: "The Policyholder was age 60 years or older at the time of the sale of the Policy." 4. The following shall be added to Exhibit B to the Stipulation of Settlement as subsection V.A.4.: The life insurance application underlying the Policy contains an unauthorized signature. In the event that this Claim-Resolution Factor exists, the Claimant shall be offered no less than the remedy provided for a Claim attaining a score of "3" as set forth in Section V.C. 5. The following provision shall be added to Exhibit C to the Stipulation of Settlement as subsection II.D.4.: "Provide Claimants who so request with current information with respect to the existence of any outstanding loans, their most recent dividend payments, their dividend status, and, where applicable, their currently illustrated year of abbreviation." -2- IN WITNESS WHEREOF, the undersigned stipulate and have entered into this Stipulation of Settlement as of the 22nd day of February, 1997. APPROVED AND AGREED TO BY AND ON BEHALF OF THE NAMED PLAINTIFFS, IN THEIR INDIVIDUAL AND REPRESENTATIVE CAPACITIES By: -------------------------------- Melvyn I. Weiss, Esq. Milberg Weiss Bershad Hynes & Lerach LLP By: -------------------------------- Michael B. Hyman, Esq. Much Shelist Freed Denenberg Ament Bell & Rubenstein, P.C. APPROVED AND AGREED TO BY THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By: /s/ James R. Gillen -------------------------------- James R. Gillen, Esq. General Counsel COUNSEL TO THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By: /s/ Michael H. Barr -------------------------------- Michael H. Barr, Esq. Sonnenschein Nath & Rosenthal APPROVED AND AGREED TO BY AND ON BEHALF OF RONALD D. BARBARO By: /s/ Michael H. Barr -------------------------------- Michael H. Barr, Esq. Sonnenschein Nath & Rosenthal APPROVED AND AGREED TO BY AND ON BEHALF OF ROBERT A. BECK By: /s/ Charles M. Lizza -------------------------------- Frederick B. Lacey, Esq. Charles M. Lizza, Esq. LeBoeuf, Lamb, Greene & MacRae L.L.P. IN WITNESS WHEREOF, the undersigned stipulate and have entered into this Stipulation of Settlement as of the ____ day of February, 1997. APPROVED AND AGREED TO BY AND ON BEHALF OF THE NAMED PLAINTIFFS, IN THEIR INDIVIDUAL AND REPRESENTATIVE CAPACITIES By: /s/ Melvyn I. Weiss -------------------------------- Melvyn I. Weiss, Esq. Milberg Weiss Bershad Hynes & Lerach LLP By: /s/ Michael B. Hyman -------------------------------- Michael B. Hyman, Esq. Much Shelist Freed Denenberg Ament Bell & Rubenstein, P.C. APPROVED AND AGREED TO BY THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By: -------------------------------- James R. Gillen, Esq. General Counsel COUNSEL TO THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By: -------------------------------- Michael H. Barr, Esq. Sonnenschein Nath & Rosenthal -3- APPROVED AND AGREED TO BY AND ON BEHALF OF ROBERT C. WINTERS By: /s/ Guy V. Amoresano -------------------------------- Guy V. Amoresano, Esq. Crummy, Del Deo, Dolan, Griffinger & Vecchione