Ohio National Trail Lawsuits: FA Class Action Dismissed But Broker-Dealer Litigation To Continue
October 8, 2019 by Mrinalini Krishna
A federal judge dealt a big blow to broker-dealer representatives suing Ohio National for the insurer’s decision to stop paying commission on certain variable annuities last year. And in two other cases, Ohio National entities’ motion to quash litigation by broker-dealers was denied.
U.S. District Judge Susan J. Dlott ruled in favor of Ohio National entities, granting their motion to dismiss two lawsuits brought by reps.
Judge Dlott rejected a July report and recommendation of a magistrate’s court that, as reported, denied Ohio National’s bid to quash the two lawsuits and recommended consolidating them.
At the heart of the matter was whether individual reps had any standing to stake claims against Ohio National for non-payment of trail commissions.