Class Action Vs Great-West Can Proceed, Judge Says
VANCOUVER, British Columbia (Reuters) - A class action lawsuit, potentially worth several hundred million dollars, can proceed against Great-West Lifeco Inc. (GWO.TO), Canada's second biggest insurance company, an Ontario court judge has ruled.
The suit, brought by two former actuaries of London Life Insurance Co, which was bought by Great-West in 1997, could involve up to 1.8 million policyholders, court documents dated Feb. 29, 2008, show.
The plaintiffs allege C$220 million ($222 million) of London Life policyholder money was unlawfully used to help Great-West purchase the firm. They are demanding policyholders get the money back, with interest, in the form of a dividend.
Great-West denies the allegations, the documents show, and it says its actions around the purchase of London Life were fair to policyholders.
Shares in Great-West lost 67 Canadian cents, or 2 percent, to close at C$30.17 on the Toronto Stock Exchange on Monday. Other insurance stocks were also weaker.
($1=$0.99 Canadian)
(Reporting by Nicole Mordant; Editing by Peter Galloway)
