Torchmark Subsidiary Receives Revised Opinion
08/07/2003 8:01am
UK Regulatory
Torchmark Subsidiary United Investors Receives Revised Opinion Upon Rehearing
By Alabama Supreme Court in Case Against Waddell & Reed
BIRMINGHAM, Ala., July 8 -- Torchmark Corporation (NYSE: TMK) announced
today that the Alabama Supreme Court issued an opinion on Thursday, July 3,
2003, withdrawing its prior opinion issued April 18, 2003. The original opinion
had reversed a $50 million trial court jury verdict rendered in favor of
Torchmark subsidiary, United Investors Life Insurance Company (United) and
against Waddell & Reed Financial, Inc. along with four of its subsidiaries
(Waddell & Reed). The Supreme Court's new opinion was issued in response to
United's Petition for Rehearing. The Supreme Court revised its original ruling
by affirming the trial court jury's verdict in favor of United and against
Waddell & Reed on Waddell & Reed's claims for unjust enrichment, breach of
contract and fraud and by affirming a separate ruling by the trial judge
declaring that there was no contract as alleged by Waddell & Reed. The Supreme
Court left intact its earlier decision to reverse and render the trial court
jury's verdict in favor of United on its claims of tortious interference and
fraud related to a campaign by Waddell & Reed to replace United's existing
variable annuity policies with those of another carrier and to reverse and
remand United's other claims for conversion, breach of contract, fraud and
concealment back to the trial court for a new trial.
The effect of the revised opinion is that Waddell & Reed will not be able
to argue as it did previously that its actions in withholding over $10 million
of funds belonging to United were justified by the existence of a valid and
binding contract. The revised opinion settles in United's favor that there
was no contract, and disposes of Waddell & Reed's claims of fraud and unjust
enrichment against United. As a result, United will be able to present its
claims for damages of over $10 million relating to the conversion of funds by
Waddell & Reed and for punitive damages of up to three times that amount under
Alabama law without regard to any offsetting claims of Waddell & Reed.
Torchmark Corporation is a financial services holding company specializing
in life and supplemental health insurance for "middle income" Americans
marketed through multiple distribution channels including direct response, and
exclusive and independent agencies. Subsidiary Globe Life And Accident is a
nationally recognized direct-response provider of life insurance known for its
administrative efficiencies. United American has been a nationally recognized
provider of Medicare supplement health insurance since 1966. Liberty National
Life, one of the oldest traditional life insurers in the Southeast, is the
largest life insurer in its home state of Alabama. American Income Life is
nationally recognized for providing supplemental life insurance to labor union
members.
SOURCE Torchmark Corporation
-0- 07/08/2003
/CONTACT: Joyce Lane, Vice President, Investor Relations of Torchmark
Corporation, +1-972-569-3627, or fax, +1-972-569-3696, or
jlane@torchmarkcorp.com /
/Company News On-Call: http://www.prnewswire.com/comp/885425.html /
/Web site: http://www.torchmarkcorp.com /
(TMK)
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