California Class Certified in PFA Pyramid Scheme Suit
The Northern District of California on November 3, 2021 granted class certification in part in a class action against Premier Financial Alliance, National Life Insurance Company, and Life Insurance Company of the Southwest.
The court ruled that plaintiffs presented sufficient proof that a class trial could be held on claims that California class members were enrolled in a pyramid scheme and the sales pitch violated the California Business and Professions Code.
The court noted in part that “the reasoning stated in the [PFA] training materials is that, if an agent focuses on recruiting and on encouraging his or her recruits to also focus on recruiting, then the agent will be able to achieve financial success without having to make ongoing sales his or herself.”
Plaintiffs are seeking to give each member of the class the right to rescind their insurance policy and get a refund based on total premiums paid.
Girard Sharp was appointed lead class counsel.