Kyle Busch resolves $8.5 million legal dispute with Pacific Life Insurance.
CHARLOTTE, N.C. — Two-time NASCAR champion Kyle Busch and a life insurance firm have resolved an $8.5 million lawsuit in which the driver alleged he was deceived into acquiring policies promoted as secure retirement plans.
Kyle and Samantha Busch reached a settlement outside of court with Pacific Life Insurance Company, as indicated in a court filing dated Feb. 26. The specifics of the agreement remain confidential.
“Both parties engaged constructively to reach a confidential outcome that is acceptable to both and avoids further legal action,” Pacific Life stated in a press release.
The Busches initiated legal action against Pacific Life last October, asserting they incurred losses exceeding $8.5 million after being misled into buying life insurance policies. They allege they paid over $10.4 million in premiums based on deceptive illustrations and false assurances of guaranteed returns.
The lawsuit charged Pacific Life and one of its representatives with promoting indexed universal life policies as “tax-free retirement plans” through speculative forecasts that did not reveal actual risks and expenses. The complaint alleged that the company prioritized commissions over the interests of policyholders and breached North Carolina’s Unfair and Deceptive Trade Practices Act.
In January, Pacific Life sought dismissal of the case, arguing that the Busches did not fully fund their policies and had signed documents consenting to the terms. The company also contended that the lawsuit surpassed the three-year statute of limitations, pointing out that it was filed seven years after the policies were established.
Source: espn.com
