Dodgers owner faces insurance class action

Key Points:

• Mark Walter, outgoing majority owner of the Los Angeles Lakers and co-owner of the Los Angeles Dodgers, is facing a proposed class-action lawsuit alleging fraudulent concealment, breach of contract, and other claims related to annuities sold by Delaware Life Insurance Company.
• The lawsuit, filed in the Southern District of Florida, also names Delaware Life, Group 1001, TWG Global, and Guggenheim Partners, accusing them of misrepresenting insurer asset allocations and concealing grand jury subpoenas to prevent policyholders from making no-penalty annuity returns.
• Group 1001, a parent company of Walter, denies wrongdoing and intends to vigorously defend the case, emphasizing their history of serving policyholders with integrity.
• Federal prosecutors and the SEC are conducting parallel investigations into disclosures involving Walter-controlled insurers, but no charges have been announced; meanwhile, Walter is in the process of selling his stakes in the Lakers and Chelsea Football Club.
• The lawsuit also revisits past allegations that policyholder funds were improperly used to finance Walter’s 2012 purchase of the Dodgers, claims that had previously resulted in a class-action filing in 2014.