MassMutual Faces Slew of Suits
Life insurance giant Massachusetts Mutual Life Insurance Co. is facing lawsuits alleging that it not only curtailed the dividends of policyholders but also deprived them of their voting rights by transferring the rights to those covered by the policies.
The Boston Globe reports that as MassMutual is owned by policyholders, they are entitled to a certain part of the company’s profits as dividends and to vote for its directors. However, two lawsuits filed against the insurer allege that by underreporting its profits, the company deprived almost two million customers of dividends totaling more than $5 million.
The company also faces a lawsuit alleging it of violating state laws by transferring the right to vote from policyholders to those covered by the policy, writes the Globe.
A company representative said that MassMutual had followed the law and the suits had no merit.
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