Vericity’s Sale to iA Financial From J.C. Flowers Draws Lawsuit

An investor is suing Vericity Inc. over fears that the life insurer’s planned $170 million sale to iA Financial Corp. may have been engineered to favor of its controlling stockholder, an affiliate of private equity billionaire J. Christopher Flowers.

The shareholder lawsuit, filed Thursday, seeks internal company files to investigate concerns that that the transaction announced Oct. 3 reflects a push by a J.C. Flowers & Co. fund to exit its stake “as soon as possible, to the detriment of Vericity’s unaffiliated stockholders.”

The sale is expected to close in the first half of 2024, the companies said the day ...