Penn Mutual Beats Georgia Appeal Over Variable Annuity Advice

Penn Mutual Life Insurance Co. and a subsidiary defeated an appeal claiming they improperly steered investors into expensive and unsuitable variable annuities, when the Eleventh Circuit ruled that federal securities law blocked the proposed class from claiming Georgia law violations.

The essence of Jeffrey Cochran’s complaint is that Penn unit Hornor, Townsend & Kent LLC made false statements or failed to disclose material facts about the suitability of variable annuities in tax-advantaged individual retirement accounts, the US Court of Appeals for the Eleventh Circuit said Tuesday. These allegations—which Cochran says amount to a fiduciary breach under Georgia law—involve misrepresentations or ...