An update on past news
Wednesday, June 12, 1996
Wednesday, June 12, 1996
Answer: The class action was combined into the Metcalf action. The case was originally filed by the David Schutter law firm against Bank of America; then a separate case was filed by state Insurance Commissioner Wayne Metcalf under Metcalf vs. Bank of America.
In November 1995, the Schutter firm and Insurance Commissioner Metcalf joined forces, with Metcalf acting in his capacity as liquidator for failed insurance companies, in this case Investors Equity Life Insurance Co. of Hawaii Ltd., which had been owned by Honfed Bank until 1985, before Honfed was purchased by Bank of America in 1992.
The original case - which alleged Honfed misrepresented its sales of Investor Equity annuities - was voluntarily dismissed by the plaintiffs and Schutter was retained as special counsel to all policy holders in the Metcalf case, which is now proceeding in discovery or preliminary phases.
Circuit Court Judge Colleen Hirai has been named complex litigation judge in the Metcalf case. The next court date is July 5. The matter probably will take a year or more to settle.
The Metcalf case was brought on behalf of thousands of Investors Equity customers, charging that Bank of America's predecessor, Honfed Bank, misled customers into believing money put into the annuities was going into deposits at the bank.