Nature of Proceedings: Order Approving Notice to Class Members; Motion: Stay
In this consolidated action, plaintiffs Philip Letzo, Hans Lingens, and Bonita Braaten, Executor of the Estate of Glenn Braaten, have sued defendant David Abraham, a licensed life insurance agent, and his former employers, defendants Chapala All American Insurance Services, Inc. (formerly known as MFC&V Insurance Services, Inc.) and Brown & Brown Insurance Services of California, alleging that defendants engaged in a fraudulent “churning” scheme whereby plaintiffs were induced to buy and then replace annuity and life insurance contracts for the purpose of generating commissions for defendants. Plaintiffs allege that they suffered damages in the form of early surrender charges and penalties when their life and annuity contracts were replaced. The complaint asserts causes of action for negligence, breach of fiduciary duty, intentional misrepresentation, violation of Insurance Code Section 10509.4, an