General American News and Timeline
General American Mutual Holding Company is preparing to discharge the Liquidator and Special Deputy Liquidator at a hearing to be held Thursday, October 6, 2016. GAMHC has been in a period of dormancy since August 2013 waiting for certain tax and administrative issues, including tax refunds, statutes of limitations on taxes and follow up requests from the escheatment of uncashed funds. These issues have now been resolved to the point that the discharge is able to take place.
GAMHC escheated uncashed checks from all five distributions to the Unclaimed Property Division of the Missouri State Treasurer's office. There are 36,326 aggregated accounts with a total of $4,506,664.07 - out of $1.523 billion distributed - that has been transferred as unclaimed property. GAMHC members may now contact the State Treasurer at www.showmemoney.com to begin the process of claiming funds they believe they may be due from the escheatment.
Leland M. Shurin is appointed Special Deputy Liquidator by Order of the Supervising Court.
Albert A. Riederer resigns as Special Deputy Liquidator, due to declining health.
GAMHC is on track to begin mailing the Court approved fifth distribution on July 13, 2012. It will take approximately two weeks to get all 302,359 checks in the mail. The distribution totals $68 million and will be the final distribution of assets to GAMHC's eligible members.
The Dewey & LeBoeuf case has been resolved. GAMHC anticipates making a final distribution later this year, with discharge of the liquidator planned for November 2012.
Discovery continues in the Dewey & LeBoeuf lawsuit. The trial has been reset to begin on February 2, 2012.
The lawsuit against Dewey & LeBoeuf is proceeding through the discovery phase and is currently set for trial commencing on July 5, 2011.
GAMHC begins mailing checks on Nov. 18 to 302,359 eligible members for a total distribution of nearly $75 million. The checks will be mailed at a rate of approximately 30,000 per day until Dec. 2, 2009.
The GAMHC lawsuit against Dewey & LeBoeuf was moved by change of venue to Boone County, Mo. It is pending before Judge Kevin Crane.
Judge Patricia S. Joyce signs an order authorizing GAMHC to make a fourth distribution in the approximate amount of $75 million. The checks will be mailed over a 10-day period beginning Nov. 18, 2009.
GAMHC files a lawsuit in Cole County, Mo., against the law firm of Dewey & LeBoeuf LLC and former GAMHC CEO Richard Liddy.
John M. Huff is confirmed as Director of the DIFP.
GAMHC, through its tax attorneys and accountants recovered or saved in excess of $205,000,000 in both federal and state taxes to the benefit of the members to date.
Judge Patricia S. Joyce signs an Order approving settlement of the case between GAMHC and the Goldman Sachs defendants. The case is settled in the amount of $100,005,000.
A Request for Prompt Assessment was filed with the Internal Revenue Service to alert the IRS that GAMHC wants all outstanding tax issues resolved. The request is accepted and a target date of November 2009 is set for resolving those issues.
Federal corporate taxes for tax year 2007 are filed.
Distribution 3, in the amount of $150,000,000, begins mailing and continues through the first two weeks of December.
Judge Patricia S. Joyce signs an order authorizing a third distribution in the amount of approximately $150 million. Checks will be mailed on or about November 28, 2007.
GAMHC and Metropolitan Life agree to settle the Article X Indemnification Claims, which had been presented to GAMHC in the amount of $124,000,000, for the sum of $39,000,000.
GAMHC files a lawsuit in St. Louis City Circuit Court alleging that Goldman Sachs investment banking firm had conflicts of interest that damaged the value of the insurance holding company. The court action seeks actual and punitive damages. The outcome of the case will affect the timing and the amount of the final distribution.
Judge Patricia S. Joyce takes over as Supervising Judge for GAMHC's case in Cole County.
Douglas M. Ommen replaces W. Dale Finke as the Director of the Department of Insurance, Financial Institutions and Professional Registration, and as Statutory Liquidator of GAMHC.
Judge Thomas J. Brown leaves the bench for private practice.
Order is signed by Judge Thomas J. Brown acknowledging settlement of the case between GAMHC and the Morgan Stanley defendants. The case is settled in the amount of $95,000,000.
Final member objections are resolved and corresponding distribution checks mailed.
GAMHC continued the initial distribution by mailing checks to eligible members whose addresses were located by GAMHC and whose objections were resolved.
A second distribution of $200 million was mailed to the eligible members in late March and early April.
The SDL filed a report to the Court regarding GAMHC's operations.
W. Dale Finke replaces Scott Lakin as the Director of the Department of Insurance and as the Liquidator of GAMHC.
GAMHC continued the initial distribution by mailing checks to eligible members who were included in the August 2004 mailing.
GAMHC re-mailed distribution notice packets to eligible members whose addresses were found through address research and the Distribution Call Center.
GAMHC continued the initial distribution by mailing checks to eligible members whose objections were resolved by the special deputy liquidator’s (SDL) determination of claim letters.
Missouri Department of Insurance Director Scott Lakin, as liquidator for GAMHC, has filed a lawsuit in St. Louis City Circuit Court alleging Morgan Stanley & Co. investment banking firm had conflicts of interest that damaged the value of the insurance holding company. The court action seeks $4 billion in actual and punitive damages. The final distribution of GAMHC's proceeds depends on the case's outcome.
The SDL sent determination of claim letters to eligible members who objected.
GAMHC continued the initial distribution by mailing checks to eligible members who received their notice packet in October 2003. The SDL filed an accounting to the court updating:
- GAMHC’s initial distribution of $1 billion to its eligible members.
- The three-year indemnity claims presented to the SDL by MetLife.
- The liquidator’s prosecution of Lakin v. KMPG, et al.
- The resolution of tax matters.
- The day-to-day administration of GAMHC.
GAMHC re-mailed notice packets to eligible members whose addresses were found through address research and the Distribution Call Center.
GAMHC began the initial distribution of $1 billion dollars to its eligible members. GAMHC did not send checks to eligible members if:
- They filed an objection; or
- Their notice packet was returned by the Post Office;
- Eligible members called the Distribution Call Center and notified GAMHC that they did not receive a notice packet.
GAMHC immediately began to look for updated addresses for the eligible members whose packets were returned.
GAMHC's special deputy liquidator filed with the Cole County Circuit Court a report updating:
- the receivership's mailing to more than 300,000 members about their share of this fall's $1 billion distribution,
- an interim accounting of objections filed,
- appointment of Senior Judge Byron Kinder on MetLife's indemnity claims against GAMHC,
- the receivership's case against the accounting firm of KPMG and
- tax issues that will affect the final settlement of the liquidation.
The Department of Insurance filed a liquidation petition in Cole County Circuit Court. (PDF 43 Kb)
U.S. judge accepts class-action settlement on General American sales practices
Dec. 19, 2000 - Eastern District U.S. Judge Catherine D. Perry accepted a class-action settlement agreement that obligates General American Life Insurance Co. to pay an estimated $55 million to compensate policyholders for deceptive sales practices.
The proceedings, involving life policies from 1982 to 1996, also will settle an MDI market conduct action against the insurer. Perry's order covers all persons in the class except 54 policyholders who opted out and may pursue individual litigation. The order follows a Dec. 15 fairness hearing and the Aug. 24 announcement of a tentative settlement between MDI and General American.
The lawsuit and the MDI action do not affect, in any way, the distribution of $1.2 billion in proceeds from the January 2000 sale of General American Life and its affiliates to MetLife.
Cole County judge accepts distribution plan for GAMHC sale proceeds
Dec. 6, 2000 - Cole County Circuit Judge Thomas J. Brown issued an order setting rules on how to distribute $1.2 billion in proceeds from the sale of General American Mutual Holding Co.'s (GAMHC) assets to MetLife.
As a mutual company, GAMHC was owned by its policyholders, and those rendered eligible by Brown's ruling will share in the distribution of the sales proceeds and interest income, probably in the year 2003.
Brown's order provides that:
- Eligible policyholders as of Jan. 5, 2000 will participate in the distribution. This ruling removes the last doubts about the ability of policyholders to make changes or cash in their continuing General American Life Insurance Co. insurance contracts, if they so choose, without jeopardizing their GAMHC share.
- All eligible policyholders will receive a "fixed share" that equally divides 5 percent of the net sales proceeds. Eligible policyholders will receive so-called "variable shares" of the remainder of the funds under a complex formula that takes into account the number of policies held, their age, amount and other factors. Brown accepted the special deputy rehabilitator's proposal on the broad terms of the formula.
- Parties that want to legally challenge the terms of the sale or management decisions last year that precipitated the sale must file a "claim" by Jan. 31, 2001 or forfeit their right to do so. Brown approved a proposed claim form and public notice about the so-called "bar date."
After a mailing to all 330,000 policyholders potentially affected, Brown only received eight written challenges or comments to the special deputy rehabilitator's proposals. A few were represented by counsel at the Nov. 16 public hearing on the proposals before Brown.
If you have further questions, please call 866-586-4625.
There will be a hearing on November 16, 2000, focusing on the receiver's plans for a formula to distribute the $1.2 billion in sales proceeds and subsequent interest income from the January sale of GAMHC to MetLife. Also included is the receiver's proposals to make policyholders as of Jan. 5, 2000, eligible for a share of the proceeds, and other eligibility criteria.
Eligible policyholder-owners DO NOT have to file a claim or take any other action to receive their share of the sales proceeds and interest income.
General American tentatively agree on $55 million settlement, fine for marketing violations on life policies
MetLife, General American finalize sale; MDI begins investment of $1.2 billion
Policyholders can also contact the DIFP Insurance Consumer Hotline at 800-726-7390.
Read the Stock Purchase Agreement by and between General American Mutual Holding Company and Metropolitan
Life Insurance Company (dated 8/26/1999).
Read the Amendment to the Stock Purchase Agreement (dated 9/16/1999)