Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

LPL Financial Sued in Classaction Over Variable Annuities

Boston-based LPL Financial has been sued by two Nebraska investors in a class action alleging the sale of unsuitable variable annuities in their retirement accounts. The lawsuit alleges that the firm's broker, Bob Bennie, made material misrepresentations regarding the nature, suitability, and appropriateness of a variable annuity within an IRA or qualified retirement plan. Court documents prepared by an attorney for the investors claim that Richard and Carol Ripley purchased $366,500 worth of the annuities. The case was recently moved to federal court.

As I explained in an earlier blog post, claims against brokerage firms relating the sale of variable annuities has increased dramatically. Far too often, brokers recommend their clients purchase a variable annuity due to the high commissions the brokers receive on the sales; they one of the highest commissioned products a broker can sell. The commissions that securities brokers receive for selling variable annuities are just too much for many brokers to resist. The commission received on the sale of a variable annuity is likened to the length of the surrender period. In other words, if the surrender period is 7 years (the average) the commission paid is approximately 6 -7%. The commission ranges between 4 and 8%, typically.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram