The class-action lawsuit against American Skandia Life Assurance Corp. has been dismissed, according to Skandia Insurance Co. The former parent company was still liable for the case even though the sale of the American subsidiary to Prudential Financial closed last year.

The case pertained to the sale of variable annuities within qualified plans, and claimed that American Skandia’s prospectuses were misleading, containing both misstatements and omissions regarding the suitability of variable annuities to fund qualified plans.

In the case of Donovan v. American Skandia Life Assurance Corp. et al., Milton Pollack, senior judge for the U.S. District Court for the Southern District of New York, concluded, "the disclosures in the prospectuses, taken in context, conclusively disprove the materiality of the alleged omissions and are thus fatal to the plaintiffs' claims."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.