Investing in a variable annuity in a tax-deferred retirement plan has long been the target of industry critics, but this month a New York law firm did more than just harp on the practice. It filed a lawsuit against it.

Wolf Haldenstein Adler Freeman & Herz filed a class-action lawsuit in the U.S. District Court for the Southern District of New York against American Skandia Life Assurance and its affiliates. The lawsuit alleges that Skandia, which Prudential Insurance of Newark, N.J., has just acquired (see AMN January), made material misleading statements and omissions in the prospectuses of variable annuities sold into tax-deferred retirement accounts.

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