What You Need to Know
Advisor Group alleges Venerable breached the terms of a marketing agreement between the firms.
Private equity firm Reverence Capital Partners is a majority owner of Advisor Group and a part owner of Venerable.
The broker-dealer is seeking at least $900,000 in compensatory damages.
Advisor Group is seeking at least $900,000 from Venerable Insurance and Annuity Co. and Directed Services, alleging the variable annuity firm and its affiliate breached the terms of a marketing and support agreement by abruptly terminating the deal and payments made to the broker-dealer under the pact.
In a complaint filed against Venerable and Directed Services in U.S. District Court for the Eastern District of Pennsylvania, Advisor Group said that, on or about Aug. 31, 2015, the defendants entered into a letter agreement with the BD under which Advisor Group would provide marketing services and support to Venerable and Directed Services for certain insurance products.
Advisor Group seeking nearly $1M in lawsuit against Venerable financial-planning.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financial-planning.com Daily Mail and Mail on Sunday newspapers.
In Advisor Group lawsuit, the right hand is suing the left
The independent broker-dealer, backed by Reverence Capital Partners, is suing an annuity company owned, in part, by the same private equity firm.
April 21, 2021 2 MINS
It’s a tale perhaps only possible in an era when the financial services industry is awash in private equity money: A large network of broker-dealers, Advisor Group Inc., is claiming in a lawsuit that an annuity manufacturer, the former Voya Insurance and Annuity Co., is in breach of contract and has turned its back on a marketing agreement that paid Advisor Group $300,000 per year.
Texas Council on Consumer Direction | Texas Health and Human Services texas.gov - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from texas.gov Daily Mail and Mail on Sunday newspapers.