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Ben Glass
Ben Glass
Attorney • (703) 584-7277

Prudential Hit for Denying Disability Benefits

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A jury ordered Prudential Insurance Co. to pay $15.5 million to an woman who was denied her disability benefits. The woman applied for benefits because she suffers from chronic fatigue, fibromyalgia, lupus, and an immune system disorder.

One thing that immediately comes to mind is that this wasn’t her employer’s group disability policy. Those policies are virtually worthless (as explained in my book, Robbery Without A Gun.) and you can’t get a jury, let alone punitive damages. (Don’t get me started about ERISA, the great rip off of American employee)

The San Diego Tribune has this story.

According to that paper’s website:

On Thursday, the jury ordered Prudential Insurance Co. to pay $14 million in punitive damages on top of $1.5 million it awarded Johnson last week in compensatory damages to cover benefits the company had refused to pay.

Maybe a verdict like this, assuming it is upheld or forces a substantial settlement, will force Prudential to act responsibly. Prudential has a lot of this business and we do see their name come up quite frequently in new client interviews. Like UNUM, it often takes a few jury verdicts to get the corporate heads to wake up and smell the coffee.