Ohio National, Foes Seek Stay of Texas Trail Commission Case Until Parallel Ohio Lawsuit Resolved
November 20, 2019 by Greg Land
In the midst of multiple lawsuits accusing Ohio National Life Insurance of improperly cutting off trail commissions to brokers and agents selling its variable annuities, a Texas brokerage and the insurer have asked a federal judge to stay litigation there until a parallel lawsuit in Ohio can proceed.
The filing comes after U.S. District Judge Susan Dlott of the Southern District of Ohio tossed out two related lawsuits last month. An appeal has already been filed in one of those lawsuits.
But Dlott allowed another suit, Veritas Independent Partners v. Ohio National Life Insurance, to proceed to discovery.
Given the unsettled nature of the litigation playing out nationally between broker-dealers and Ohio National and its affiliates, lawyers in the Texas litigation said it would be prudent to wait until Veritas is resolved “or at least until discovery is coordinated among the multiple cases filed around the country regarding this dispute.”