AMENDMENT TO STIPULATION OF SETTLEMENT
Published on
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