Appeal Rejected, Class Notice Likely to Proceed
March 6, 2025 | CohenMalad, LLP is beyond pleased to share that the Second Circuit Court of Appeals has denied Gerber Life Insurance Company’s petition to halt the case while the appellate court reviews the class certification order. This means class notice will likely now be issued, allowing millions of affected consumers to formally be notified of the lawsuit.
Attorneys leading the case for Plaintiffs, Lynn Toops and Natalie Lyons of CohenMalad, LLP, have also moved for summary judgment asking the Court to enter judgment for the certified classes.
For further comment please contact Lynn Toops or Natalie Lyons at 317.472.6744 or online here.
Loguidice v. Gerber Life Insurance Company | Case Number: 7:20-cv-03254 New York Southern Court, Judge Kenneth M. Karas
Case Recap: Deceptive Marketing of Gerber’s Life Insurance Plans
The lawsuit, filed on behalf of class representatives by Emilie Norman and Josephine Loguidice, alleges that Gerber Life Insurance Company intentionally misled consumers for years about the actual value and purpose of the “savings plan.” In particular, Gerber preyed upon new mothers and grandmothers of modest means and education, women living paycheck to paycheck, into believing they were purchasing savings plans for their children’s futures. Instead, they were sold life insurance policies that only paid out if the child died.
In a landmark decision on September 27, 2024, Judge Kenneth M. Karas granted nationwide class certification, allowing over 2 million affected consumers who collectively paid more than $700 million in premiums to proceed with claims against Gerber.
The court determined that Gerber’s deceptive marketing originated in New York, justifying the application of New York consumer protection laws to all class members. Plaintiffs argue that consumers deserve full refunds of their premiums. Three proposed damage models were approved by Judge Karas:
- Full Refund of Premiums Paid: Refund of all premiums paid less any payments made
to policyholders, such as death benefits or policy loans. - Refund Minus Mortality Protection: Refund of premiums less the cost of mortality protection.
- Refund Minus Additional Costs: Refund of premiums less Gerber Life’s acquisition and maintenance costs related to the policy, in addition to the cost of mortality protection.
With Gerber’s attempt to pause the case denied, the lawsuit now moves forward at full speed—bringing justice one step closer for those misled by the company’s misleading sales tactics.
