A settlement has been proposed in a long-running class action lawsuit involving Sun Life and MetLife. This development affects Canadians who held individual life insurance policies with MetLife during the late 1980s and 1990s. The class action was initiated in 2010 and recently reached a proposed settlement agreement.
Background of the Lawsuit
The lawsuit targets policies sold by Metropolitan Life Insurance Company (MetLife) between 1987 and 1998. In 1998, Sun Life took over the administration of these policies following its acquisition of MetLife, making the settlement particularly significant.
Class counsel Kim Spencer McPhee Barristers P.C. represents the claimants in the Ontario Superior Court of Justice. The lawsuit alleges that individuals may have been overcharged for insurance costs and administrative fees on specific MetLife policies sold during this period.
Details of Eligibility
Canadians who owned one of the following policies during the specified timeframe may be eligible for compensation:
- Universal Plus Class: Owners of this policy from 1987 through 1998, including any successor owners.
- Flexiplus Class: Canadians who purchased this policy from MetLife during the same period and experienced increased costs.
- Optimet Class: Policyholders of this type from 1987 through 1998, who faced a rise in insurance rates.
Proposed Settlement Amount
If approved, Sun Life is set to pay up to $213.5 million to eligible class members. This settlement could impact Sun Life’s reported net income by approximately $145 million in the first quarter of 2026. The specific amount each class member will receive is still undetermined.
Next Steps for Policyholders
Eligible policyholders or their beneficiaries are urged to register their information online. Applicants will need to provide personal details, their status related to the policy, and information regarding the type of policy they own. It is important to have documentation that confirms ownership or involvement with the policy in question.
The settlement awaits court approval, with a date yet to be confirmed. More updates will be posted on the El-Balad class action website after June 1.
In addition to this settlement, Canadians are encouraged to check their eligibility for other class action settlements against CIBC and Estée Lauder.
