Several northwestern Indiana teachers have filed a lawsuit against the two companies for allegedly rigging retirement options to favor the financial services company. The lawsuit is seeking class action status and claims Metlife and the ISTA Financial Services Corp. violated state securities laws and a state consumer protection statute. It alleges that Metlife was involved in a broad conspiracy to solicit teacher retirement funds by deceptive practices and that Metlife's investment plans cost members about 30% more in annual fees than comparable plans.
The plaintiffs allege Metlife used the endorsement of ISTA and its subsidiary, ISTA Financial Services to sell securities to public educators throughout Indiana. The lawsuit claims Metlife was in violation of both the Indiana Consumer Deceptive Practice Act and the Indiana Securities Act.
