Torchmark Announces Entry of Court Order in Waddell & Reed Litigation
July 01, 2002
Torchmark Corporation (NYSE: TMK) announced that today its subsidiary, United Investors Life Insurance Company, received an order issued by the Jefferson County, Alabama Circuit Court in United's litigation against a former affiliate, Waddell & Reed Financial, Inc. and four other Waddell & Reed affiliates, granting a declaratory judgment for United and against Waddell. The Jefferson County Circuit Court refused to set aside or reduce the $50,000,000 compensatory damage verdict awarded against Waddell by the trial jury in the original litigation. The Court's order stated that there was no valid and binding contractual or other obligation requiring United to pay certain additional compensation that Waddell had sought in connection with United's in-force block of variable annuity business for which Waddell had formerly been the distributor. Escrowed funds for the commissions owed by Waddell to United were ordered to be released to United. The Court also denied Waddell's motions to set aside the jury's verdict or to order a new trial and denied United's motion for additional injunctive relief to prohibit future replacements of United policies by Waddell since United has an adequate remedy at law through additional litigation against Waddell.
SOURCE Torchmark Corporation
CONTACT: Joyce Lane, Vice President, Investor Relations of Torchmark Corporation, +1-972-569-3627, or fax, +1-972-569-3696, or firstname.lastname@example.org
Web site: http://www.torchmarkcorp.com/