Attorneys from Donahoo & Associates, PC and Foley, Bezek, Behle & Curtis, LLP are representing individuals in a class action lawsuit against Reliant Life Shares, LLC (“Reliant”) and certain banks who served as trustees of the trusts that Reliant established to hold trust assets, including the life insurance policies in which investors invested and received fractional shares.
Together, these law firms have represented clients against other large financial institutions. They have a proven record of success in recovering financial losses for clients due to fraudulent investment practices and PONZI schemes.
Claims Alleged Against Reliant Life Shares, LLC
The class action lawsuit entitled James Reed, et al. v. Reliant Life Shares, et al. was filed August 17, 2023 in Los Angeles Superior Court but was later removed to the United States District Court for the Central District of California. (USDC Case No. 2:23-cv-08577). The case is currently overseen by Judge Stanley Blumenfeld, Jr. On December 1, 2023 Judge Blumenfeld appointed Richard E. Donahoo and Thomas G. Foley, Jr. as Interim Class Counsel for the putative class members.
The class action is brought on behalf of all investors who purchased fractionalized interests in life insurance policies (or "life settlements") through Reliant Life Shares, LLC. The lawsuit alleges claims against Reliant and the trustees for negligence, violations of the California Corporations Code, breach of fiduciary duties, financial elder abuse, and unfair competition and adding and abetting by the professional trustees. A copy of the First Amended Complaint is available here.
Plaintiffs allege they were misled about their expected annual returns, the additional out-of-pocket risks they would have to make as additional payments to pay premiums to keep the life insurance policies in force, the amount of expected future premiums, and the data utilized in choosing life insurance policies purchased and sold. In addition Plaintiffs allege that Reliant executives mismanaged the portfolio, sold several policies without investors’ knowledge and dissipated trust assets.
The lawsuit alleges that in an effort to conceal their wrongdoing from investors, Reliant used money received from investors from the sale of new life settlements to pay premiums on life settlement investments sold years earlier, which had not matured but had exhausted the “premium reserves” created necessary to keep the life insurance policies it purchased and then sold fractionalized interests on those policies to investors.
The lawsuit further alleges that Reliant Life Shares created the false appearance that the life settlements they structured and sold had minimal risk because Reliant used a “trust structure” with “independent Trustees” to safeguard investors funds. Plaintiffs allege that the trustees aided and abetting Reliant and are therefore also liable.
In another case involving Reliant Life Shares, LLC pending in the Los Angeles Superior Court, (Reliant Life Shares, LLC, et al. v. Daniel B. Cooper, et al., LASC Case No. 604858) the court has appointed a receiver to take over control of Reliant. Interim Class Counsel Donahoo and Foley on behalf of the class action plaintiffs, have filed a motion to intervene in the receivership case for the purpose of protecting the interests of the class of investors. A copy of the motion to intervene is available here.
This website will be updated as developments occur in the litigation. If you would like further information, or would like to provide information or assistance to the class action for the investors, please contact Thomas G. Foley, tfoley@foleybezek.com, at (805) 962-9495, or William E. Donahoo, wdonahoo@donahoo.com, at (714) 955-5808.
Contact the Plaintiffs' Attorneys
Contact us today regarding your Reliant Life Shares Investment.
Case Results
Donahoo & Associates, PC and Foley, Bezek, Behle & Curtis, LLP have successfully prosecuted and settled numerous class action cases. Selected cases are highlighted below.
- Donahoo & Associates, PC and Foley, Bezek, Behle & Curtis, LLP
Konstantine Shechter et al. v. Pacific West Capital Group, Inc, et al - Prosecuted and settled a class action case involving a failed life settlement company which became a Ponzi scheme. Negotiated a $9,750,000 settlement on behalf of 1,597 investors. - Foley, Bezek, Behle & Curtis, LLP
National class action involving a Ponzi scheme which resulted in settlements of $124 million paid by, inter alia, Bankers Trust Company, Merrill Lynch, and Wells Fargo Bank - Foley, Bezek, Behle & Curtis, LLP
National class action involving a Ponzi scheme which resulted in settlements in excess of $98 million paid by, inter alia, Union Bank of Switzerland and Smith Barney & Company - Foley, Bezek, Behle & Curtis, LLP
Hunter, et al., v. Okun, et al. - National class action involving a Ponzi scheme which settled for approximately $98 million. - Donahoo & Associates, PC and Foley, Bezek, Behle & Curtis, LLP
Dana Denison, et al. v. Salvation Army - $12,000,000.00 settlement of a wage and hour class action. - Donahoo & Associates, PC and Foley, Bezek, Behle & Curtis, LLP
Beauperthuy, et al., v. 24 Hour Fitness USA, Inc., et al. - National wage and hour class action under the Fair Labor Standards Act (“FLSA”), which settled for $18,800,000. - Foley, Bezek, Behle & Curtis, LLP
Bostick, et al., vs. Herbalife, Inc., et al. - A case in which it was alleged that Herbalife was a pyramid scheme, which settled for $17,500,000.00. - Donahoo & Associates, PC and Foley, Bezek, Behle & Curtis, LLP
Ramirez v. MetLife Insurance Company - Awarded $15.6 million to a grandmother who lost her life savings in a bogus investment fund that was offered by a MetLife insurance agent. - Donahoo & Associates, PC
Recovered over $6.325 million on behalf of 70 individuals who invested in a private investment program which was the subject of a SEC Investigation which exposed a fraudulent Ponzi scheme.