Unum Class Action Lawsuit
Unum accepted the settlement without admitting liability. The class action lawsuit involved thousands of people who bought Unum Provident securities from March 2000 to April 2003. Unum has created a $40 million fund to be distributed among these investors. Unum still denies the allegation.
From Class Action to Lawsuit Alleging Social Security Fraud
On the heels of this class action lawsuit, Unum faced another lawsuit filed on behalf of the Social Security Administration. This lawsuit was filed under the False Claims Act, a federal qui-tam (whistle-blower) statute that grants citizens the ability to sue on behalf of government programs if they believe they have evidence of fraud.
Unum was alleged to have forced disability claimants to apply for Social Security Disability benefits, even though they were not eligible, in order to receive their insurance payments under their Unum policy.
The criteria for disability under SSA are much stricter than most private insurers, and Unum knows this. This tactic results in policyholders filing false or obviously ineligible claims to the SSA and is meant to create long delays in Unum’s claims processing.
Although it is standard practice for insurance companies to urge claimants to file for Social Security Disability, it is in no one’s interest other than Unum’s when they know the claim will not be found eligible for Social Security disability in the first place.
This directive by Unum jams up the already overloaded Social Security disability system, and is a ploy by which Unum can delay, deny, reduce or terminate claims that would be payable under their own policies.
The implications of adding further delays to an overwhelmed Social Security Administration, as well as denying disabled beneficiaries from receiving their rightful benefits as promised by Unum – all to create more profit for the insurer – bring the company’s principals and ethical accountability under fire yet again.
Unum Group still dominates the US market for disability insurance. If you are being treated unfairly by this company, contact Unum disability lawyer Marc Whitehead to discuss your concerns. Marc Whitehead & Associates is a national disability insurance law firm that has earned the trust and respect from clients across the country.
Read more about Unum class action lawsuits in our article, A History of Unum and Class Actions.