LPL Financial Sued Over $2.2 Billion Phoenix Annuity Shortfall
Updated
Updated · Wealth Management · Jun 4
LPL Financial Sued Over $2.2 Billion Phoenix Annuity Shortfall
1 articles · Updated · Wealth Management · Jun 4
Summary
Kerry Nietz filed a class action in federal court in California, alleging LPL Financial hid Phoenix annuity risks for years while collecting millions in upfront and trailer commissions.
The complaint says LPL knew after Phoenix ratings downgrades in 2009 that the insurer was in trouble, removed it from recommended products and stopped new sales, but failed to warn existing clients.
PHL Variable Insurance Co. was pushed into liquidation in 2024, leaving about 100,000 policyholders facing a reported $2.2 billion shortfall.
Nietz says his annuity was worth more than $1 million by 2023 but he cannot access full benefits during rehabilitation, and would have cashed out or made a 1035 exchange if informed.
The suit alleges negligence, breach of fiduciary duty, fraudulent concealment, unjust enrichment and a Washington consumer-protection violation; LPL did not immediately comment.