Overview
- The suit, filed on Oct. 14 in Lincoln County, alleges the policies were marketed as tax-free, self-funding retirement plans using misleading illustrations and undisclosed costs.
- The Busches say they paid more than $10.4 million in premiums and suffered net out-of-pocket losses exceeding $8.58 million as policy values declined.
- Defendants include Pacific Life, agent Rodney A. Smith, and Red River LLC, with claims that Pacific Life failed to supervise Smith despite prior state regulatory discipline.
- The complaint alleges negligence, breach of fiduciary duty, negligent misrepresentation, and violations of North Carolina’s unfair and deceptive trade practices law that may allow treble damages.
- The couple released a video and statements warning consumers about IUL sales practices, and Pacific Life issued a general statement emphasizing client privacy and long-standing commitments.