Secured $391 Million Verdict Against PNC Bank
Mar 03, 2015OUTCOME: Jury Verdict
In 2009, Reilly Pozner began representing multiple plaintiffs in highly complex litigation against several bank trustees and numerous other defendants, leading to significant recoveries through settlem ... ents and a jury verdict of $391 million against PNC Bank. The litigation arose out of a multi-state fraud scheme involving National Prearranged Services, Inc. (a Missouri-based preneed funeral contracts seller) and its two related insurance companies domiciled in Texas. RP was retained by 35 state life and health insurance guaranty associations, NOLHGA, and the Texas Special Deputy Receiver to seek recoveries from over 40 defendants, including multiple bank trustees, an accounting firm, and the former officers and directors of NPS and the insurance companies. Plaintiffs’ claims included negligence and breach of fiduciary duty against the bank trustees for allowing the preneed trust funds to be looted, accounting malpractice, and RICO (Racketeer Influenced and Corrupt Organizations Act) claims against the former officers and directors. RP negotiated settlements with most defendants before trial, resulting in large recoveries for the clients. A five-week trial was held in federal court in Missouri in early 2015, where RP attorneys secured a jury verdict of $391 million (including a punitive damages award) against PNC Bank.
