Class Action Filed Against LPL Financial Relating to Phoenix/PHL Variable Insurance Products
Lawsuit alleges LPL Financial failed to disclose information regarding Phoenix/PHL Variable's financial condition to clients who purchased certain annuity and life insurance products.
SAN DIEGO, CA / ACCESS Newswire / July 22, 2026 / On June 3, 2026, a class action lawsuit ( Nietz v. LPL Financial LLC, No. 3:26-cv-03383-JES-DEB) was filed in the U.S. District Court for the Southern District of California against LPL Financial LLC ("LPL") on behalf of a proposed class of individuals who acquired rights under Phoenix annuities or life insurance policies sold or serviced through LPL investment advisors. The lawsuit alleges that LPL breached fiduciary duties and failed to disclose information concerning the financial condition of The Phoenix Companies, Inc. and its subsidiary, PHL Variable Insurance Company ("Phoenix" or "PHL"), the issuer of the insurance products.
The lawsuit was filed by Kerry Nietz, who is represented by Bursor & Fisher, P.A. and Edward Stone Law P.C., on behalf of a proposed class of individuals who acquired rights under Phoenix annuities or life insurance policies sold or serviced through LPL investment advisors.
According to the complaint, ratings agencies downgraded Phoenix's credit rating beginning in 2009, after which LPL removed Phoenix products from its recommended platform and stopped offering them for sale. The complaint further alleges that LPL did not notify existing policyholders of these developments and continued servicing the policies while receiving ongoing trail commissions.
On May 20, 2024, the Connecticut Insurance Department placed PHL Variable Insurance Company into rehabilitation. A rehabilitation order remains in effect that limits or restricts certain policy withdrawals, surrenders and death benefit payments.
The complaint asserts claims for professional negligence, breach of fiduciary duty, fraudulent concealment, unjust enrichment, and violation of Washington's Consumer Protection Act. The plaintiff seeks certification of a nationwide class and other relief requested in the complaint.
Related Litigation
Bursor & Fisher, P.A. and Edward Stone Law P.C. also represent policyholders in separate litigation ( Jason et al. v. State Farm Mutual Automobile Insurance Company et al., No. 25-cv-14507) in the U.S. District Court for the Northern District of Illinois, involving Phoenix/PHL insurance products sold through State Farm. According to that complaint, the plaintiffs allege that State Farm failed to disclose information concerning PHL's financial condition while continuing to service certain Phoenix/PHL insurance products.
Both lawsuits remain pending, and the allegations contained in the complaints have not been adjudicated by the courts.
Individuals who acquired rights under a Phoenix or PHL Variable annuity or life insurance policy through LPL, State Farm, or another broker-dealer or financial advisor and who have questions regarding these matters can find additional information, including counsel contact information, at edwardstonelaw.com and bursor.com.
About Bursor & Fisher, P.A.
Bursor & Fisher, P.A. is a nationwide law firm with offices in New York, California, and Florida that specializes in prosecuting class action and complex litigation. The firm has extensive expertise leading class action litigation against companies in the communications, pharmaceutical, automotive, financial, and insurance industries, and has achieved multi-million dollar settlements against many large companies.
About Edward Stone Law P.C.
Edward Stone Law P.C. focuses its practice on matters related to the specialty finance and insurance industries and on retiree and policyholder advocacy. The firm has expertise representing individuals harmed by insurance company insolvencies and has recovered millions of dollars on behalf of its clients.
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Media Contact
Yitz Kopel
Bursor & Fisher, P.A.
[email protected]
Edward Stone
Edward Stone Law P.C.
[email protected]
SOURCE: Bursor & Fisher, P.A. via EZ Newswire