Nature of Proceedings: Motion: Class Certification
Background: In this action (consolidated with Celina Andrade, et al. v. American Equity Investment Life Insurance Company, et al., Case No. 1372147 – the “Andrade action”), several plaintiffs have sued various defendants, including insurance companies, brokers and agents. Plaintiffs allege that defendants and independent agent David Abraham perpetrated a “churning” scheme in which Abraham allegedly induced plaintiffs to buy and then replace annuity contracts for the purpose of generating increased commissions. Plaintiffs contend that they incurred damages in the form of surrender charges when their annuity contracts were replaced. David Abraham was employed by defendants MFC&V Insurance Services, Inc. (“MFC&V”), Brown & Brown of California, Inc. (“Brown”) and Chapala/All American Insurance Services, Inc. (“Chapala”). Chapala is a dissolved California corporation formerly known as MFC&V. Brown acquired MFC&V in 2003. Plaintiff