Final Judgment of $289 Million Entered Against PNC Bank, Successor to Trustee for PreNeed Funeral Contract Trusts
The Special Deputy Receiver (SDR), the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) on behalf of 28 state guaranty associations, and the state guaranty associations of Missouri, Texas, Illinois, Arkansas, Kansas, Oklahoma, and Kentucky were awarded a final judgment consisting of actual and punitive damages in favor of the Plaintiffs against PNC Bank for $289,437,000.17, plus $499,723.20 in costs of court. PNC's Motion to stay execution on the judgment was granted by the Court. The judgment is now on appeal to the United States Eighth Circuit Court of Appeals.
A federal court jury had awarded Plaintiffs $391 million, including $35.5 million in punitive damages, against PNC Bank following a five-week jury trial in March 2015. The trial court made certain post-trial rulings resulting in the final judgment.
The SDR, NOLHGA and the state guaranty associations joined forces to pursue breach of fiduciary duty and negligence claims against PNC, which was the successor to Allegiant Bank and Trust Company, a St. Louis-based bank that had served as a trustee for multiple NPS preneed funeral trusts.
Until such time as the award is collected, the SDR cannot estimate the amount that the estates will ultimately distribute to creditors. All amounts recovered will be distributed pursuant to the agreement between the plaintiffs and applicable statutes.
There will be no change to the coverage provided by the guaranty associations under the Liquidation Plan.