Freedom Equity Group Lawsuits
Freedom Equity Group (FEG) is a life insurance marketing organization (IMO) that has been involved in several lawsuits in recent years. The most notable lawsuit against FEG was filed by its former competitor, First Financial Security (FFS), in 2014. FFS alleged that FEG had intentionally interfered with its contracts by poaching over 1,400 of its sales agents.
After a six-day trial, a jury found FEG liable for intentional interference with contract and awarded FFS $1.2 million in damages. FEG appealed the verdict, but it was upheld by the Ninth Circuit Court of Appeals in 2017.
FEG has also been sued by several of its former sales agents, who have alleged that the company engaged in unfair and deceptive practices. In one lawsuit, a former agent alleged that FEG had misrepresented the potential earnings of its sales agents. In another lawsuit, a former agent alleged that FEG had retaliated against him for complaining about the company’s practices.
FEG has denied all of the allegations against it. The company has argued that its sales agents are independent contractors and that it is not responsible for their actions. FEG has also argued that the lawsuits against it are motivated by sour grapes from its competitors and disgruntled former employees.
References:
- First Fin. Sec., Inc. v. Freedom Equity Grp., LLC – Casetext: https://casetext.com/case/first-fin-sec-inc-v-freedom-equity-grp-llc-5
- Ins. Distribution Consulting v. Freedom Equity Grp. – Casetext: https://casetext.com/case/ins-distribution-consulting-v-freedom-equity-grp-2
- Insurer claims rival poached 1400 agents, sues for $1.6 million: https://www.insurancebusinessmag.com/us/news/breaking-news/insurer-claims-rival-poached-1400-agents-sues-for-1-6-million-65681.aspx
It is important to note that the lawsuits against FEG are still ongoing, and the company has not been found guilty of any wrongdoing.
