MetLife’s $84 Million Death Database Settlement Filed With Judge

MetLife Inc. shareholders who accused the insurer of underreporting millions of dollars in liabilities for deceased policyholders submitted their $84 million settlement to a Manhattan federal judge for final approval.

The deal resolves a nine-year-old securities suit alleging MetLife misrepresented its financial condition through its use of the Social Security Administration’s database of reported deaths.

The shareholders, who acquired MetLife stock in 2010 and 2011, say the insurer failed to properly account for or set aside reserves for tens of millions of dollars owed in unclaimed benefits on behalf of policyholders listed in the death database. At the same time, MetLife used this database to boost its bottom line by draining the annuity balances of policyholders known to be deceased, the shareholders say.

The deal provides shareholders with about 32% of their estimated recoverable damages, according to final settlement papers filed Monday with Judge Lewis A. Kaplan of the U.S. District Court for the Southern District of New York.

The shareholders are represented by Robbins Geller Rudman & Dowd LLP, which stands to receive up to $21 million in attorneys’ fees if the deal is approved.

MetLife is represented by Debevoise & Plimpton LLP and Maynard Cooper & Gale PC.

The case is City of Westland Police & Fire Ret. Sys. v. Metlife, Inc., S.D.N.Y., No. 1:12-cv-00256, motion for final settlement approval 2/1/21.