Dead soldiers' parents sue insurer over benefits
The parents of six deceased U.S. soldiers are suing Prudential Financial, saying it paid paltry interest on military life insurance benefits and kept more generous interest earnings for itself.
Five plaintiffs joined the original plaintiff Monday in the lawsuit, first filed in July in U.S. District Court in Springfield, Mass.
They say Prudential paid them 0.5 to 1.5 percent interest on payouts it held if the beneficiaries did not cash them out after the soldiers' deaths. But they say the company made 5 to 6 percent interest on that money.
The Newark, N.J.-based insurer strongly defends its handling of the money.
Spokesman Bob DeFillippo says it is kept in safe, easily accessible accounts for which the interest rate is separate from longterm investments that bring the higher returns.
