Professional Negligence Law Reporter
Financial Planning
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Breach of fiduciary duty
September/October 2022The Does, who were approaching retirement, were allegedly persuaded by their longtime financial advisor to take substantial distributions from their IRA and purchase a life insurance policy designed for high-net-worth individuals. The policy purportedly was to provide them with a tax-free stream of income. The Does incurred lost profits from the sale of the securities and high tax liability all in one year, resulting in an IRS lien against their home.
They sued the financial advisor, two investment firms, and a life insurance company, alleging breach of fiduciary duty, constructive fraud, negligence and gross negligence, and unfair and deceptive trade practices.
The parties settled for $875,000.
Citation: Doe v. Roe Financial Advisor, Confidential Dkt. No. (N.C. Confidential Ct. Feb. 2022).
Plaintiff counsel: Brooke Howard, AAJ member James Roberts III, and Matt Quinn, all of Raleigh, N.C.
