On August 12, 2005, the Federal District for the Eastern District of Louisiana dismissed with prejudice all but one of the claims brought by a group of independent insurance agents against an annuity provider challenging the introduction of a teacher union-endorsed variable annuity into the section 403(b) and 457 education markets.

The plaintiffs, under written sales agreements with ING, solicited applications for section 403(b) and 457 annuities in various school districts in Louisiana. ING also used employee agents to solicit applications for such annuities in the same school districts.

Plaintiffs' complaints alleged ING breached the written sales agreements between the parties in introducing a variable annuity product into the section 403(b) and 457 education markets that carried the endorsement of the American Federation of Teachers. Plaintiffs also alleged that the introduction of the endorsed annuity was fraudulent and violated the Louisiana Trade Secrets Act and Unfair Trade Practices Act, as well as claims for alleged tortious interference with contract, unjust enrichment, and detrimental reliance.

The Court dismissed with prejudice all of plaintiffs' claims relating to the AFT-endorsed annuity and its introduction as being foreclosed by the written agreements between the parties and unsustainable under the applicable law.

The sole claim remaining after the Court's order are purported breaches of alleged oral agreements between the parties which are not precluded by the broad scope of the the integration clauses in the written sales agreements.

Jorden Burt LLP represents ING in this matter.

Click on the link below to read the Court's opinion.