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Armenian Assembly of America
122 C Street, NW, Suite 350
Washington, DC 20001
Phone: 202-393-3434
Fax: 202-638-4904
Email: [email protected]
Web: www.armenianassembly.org
PRESS RELEASE
FOR IMMEDIATE RELEASE
June 18, 2004
CONTACT: David Zenian
E-mail: [email protected]
ARMENIAN ASSEMBLY, ARMENIAN NATIONAL INSTITUTE CHALLENGE CALIFORNIA
GENOCIDE CASE
Washington, DC - The Armenian Assembly of America this week, on behalf
of the Armenian National Institute and certain other individuals,
challenged a proposed class action settlement reached in the California
case of Marootian, et al. v. New York Life Ins. Co. (Marootian),
on several grounds, including that it could potentially preclude New
York State from pursuing the abandoned proceeds of Genocide-era life
insurance policies. The Assembly also recently retained a noted class
action litigator with New York-based Kaplan, Fox and Kilsheimer LLP,
to analyze the proposed settlement agreement.
"We are concerned that the language in the California settlement
may be construed as so broad as to preclude the New York State
Abandoned Property Initiative," said Aram Kaloosdian, Vice President
and Counselor to the Assembly Board of Trustees and Chairman of the
Armenian National Institute.
In 2001, the Armenian Assembly urged the New York Office of State
Comptroller to investigate whether New York Life violated New York
State abandoned property laws by not turning over to the State the
proceeds of abandoned Armenian Genocide-era life insurance policies.
New York law provides that, if no address of the insured or apparent
beneficiary can be "ascertained...such person's last known address
shall be presumed to be within this state if unclaimed funds are held
or owing by life insurance corporations organized under the laws of
this state." New York Life is incorporated in the State of New York.
Under the New York law, New York Life may be liable for penalties
and accrued interest.
Recently, one of the Marootian plaintiffs' attorneys, writing to the
Assembly in response to the Assembly's inquiry whether the proposed
California settlement precludes New York State Initiative, wrote
that the "matters would seem to have little overlap." But he added
that they "do not know whether the proposed settlement in the class
action would have any effect." "If we are advised by the Court that
the California settlement does not preclude our Initiative, then we
will withdraw our challenge," said Kaloosdian.
On February 19, 2004, Judge Christina A. Snyder preliminarily
approved the settlement agreement reached between the parties in the
Marootian case and set July 30, 2004, for the final fairness hearing.
The settlement, if finally approved, would require New York Life to
pay $20 million dollars, of which $11 million was allocated to pay
the heirs or beneficiaries, $4 million to the plaintiffs' attorneys,
$3 million to various organizations, and $2 million allocated for
settlement implementation and administration.
In a filing with the Court, the Assembly stated that the settlement
agreement is too broadly defined to include "all other persons having
claims of any nature under life insurance policies." Such a provision
could affect the New York State Abandoned Property Initiative, and
specifically, whether New York Life complied with state laws and
regulations regarding abandoned life insurance proceeds.
The Assembly letter to the Court also stated that "it is likely that
persons entitled to the proceeds of the life insurance polices at
issue are deceased. Accordingly, such proceeds would be considered
abandoned property and should escheat to the State of New York,
in accordance with the public policy of New York."
The Armenian Assembly of America is the largest Washington-based
nationwide organization promoting public understanding and awareness of
Armenian issues. It is a 501(c)(3) tax-exempt membership organization.
NR#2004-059
122 C Street, NW, Suite 350
Washington, DC 20001
Phone: 202-393-3434
Fax: 202-638-4904
Email: [email protected]
Web: www.armenianassembly.org
PRESS RELEASE
FOR IMMEDIATE RELEASE
June 18, 2004
CONTACT: David Zenian
E-mail: [email protected]
ARMENIAN ASSEMBLY, ARMENIAN NATIONAL INSTITUTE CHALLENGE CALIFORNIA
GENOCIDE CASE
Washington, DC - The Armenian Assembly of America this week, on behalf
of the Armenian National Institute and certain other individuals,
challenged a proposed class action settlement reached in the California
case of Marootian, et al. v. New York Life Ins. Co. (Marootian),
on several grounds, including that it could potentially preclude New
York State from pursuing the abandoned proceeds of Genocide-era life
insurance policies. The Assembly also recently retained a noted class
action litigator with New York-based Kaplan, Fox and Kilsheimer LLP,
to analyze the proposed settlement agreement.
"We are concerned that the language in the California settlement
may be construed as so broad as to preclude the New York State
Abandoned Property Initiative," said Aram Kaloosdian, Vice President
and Counselor to the Assembly Board of Trustees and Chairman of the
Armenian National Institute.
In 2001, the Armenian Assembly urged the New York Office of State
Comptroller to investigate whether New York Life violated New York
State abandoned property laws by not turning over to the State the
proceeds of abandoned Armenian Genocide-era life insurance policies.
New York law provides that, if no address of the insured or apparent
beneficiary can be "ascertained...such person's last known address
shall be presumed to be within this state if unclaimed funds are held
or owing by life insurance corporations organized under the laws of
this state." New York Life is incorporated in the State of New York.
Under the New York law, New York Life may be liable for penalties
and accrued interest.
Recently, one of the Marootian plaintiffs' attorneys, writing to the
Assembly in response to the Assembly's inquiry whether the proposed
California settlement precludes New York State Initiative, wrote
that the "matters would seem to have little overlap." But he added
that they "do not know whether the proposed settlement in the class
action would have any effect." "If we are advised by the Court that
the California settlement does not preclude our Initiative, then we
will withdraw our challenge," said Kaloosdian.
On February 19, 2004, Judge Christina A. Snyder preliminarily
approved the settlement agreement reached between the parties in the
Marootian case and set July 30, 2004, for the final fairness hearing.
The settlement, if finally approved, would require New York Life to
pay $20 million dollars, of which $11 million was allocated to pay
the heirs or beneficiaries, $4 million to the plaintiffs' attorneys,
$3 million to various organizations, and $2 million allocated for
settlement implementation and administration.
In a filing with the Court, the Assembly stated that the settlement
agreement is too broadly defined to include "all other persons having
claims of any nature under life insurance policies." Such a provision
could affect the New York State Abandoned Property Initiative, and
specifically, whether New York Life complied with state laws and
regulations regarding abandoned life insurance proceeds.
The Assembly letter to the Court also stated that "it is likely that
persons entitled to the proceeds of the life insurance polices at
issue are deceased. Accordingly, such proceeds would be considered
abandoned property and should escheat to the State of New York,
in accordance with the public policy of New York."
The Armenian Assembly of America is the largest Washington-based
nationwide organization promoting public understanding and awareness of
Armenian issues. It is a 501(c)(3) tax-exempt membership organization.
NR#2004-059