The Hartford Reaches Preliminary $72M Settlement in Fraud Class Action

New Haven CT: A preliminary settlement has been approved by a federal judge in a class action lawsuit brought by more than 21,000 plaintiffs alleging fraud against Hartford Financial Services Group Inc.

The suit alleged that Hartford defrauded people who made claims by deducting up to 15 percent of the value of a claim settlement through undisclosed annuity costs.

The amount of the preliminary settlement is $72.5 million. If approved, it will be distributed among the plaintiffs, who could receive an average settlement of $3,300 each. Hartford has not admitted to fraud, as part of the settlement.

The settlement is expected to be finalized in September, ending five years of litigation. The class action was shedule to go to court in September.