Manulife Financial Corporation today announced it has come to a $69 million settlement agreement with parties involved in pending class action lawsuits in Ontario and Quebec. This settlement is subject to court approval.
It was alleged that Manulife did not meet its “disclosure obligations related to its exposure to market price risk in its segregated funds and variable annuity guaranteed products. The claims are unproven, and the settlement is made without any admission of liability,” said Manulife in a company announcement.
Avoids potential costs
Manulife says it firmly believes that it did meet these disclosure requirements and “defended itself vigorously in these actions”. However, settling these class actions in Ontario and Quebec allows the company to avoid the potential costs of two separate trials, explained the announcement. The settlement contains no admission of wrongdoing by Manulife or any of its former officers.