The state of Illinois has just unsealed a lawsuit filed by Total Asset Recovery Services LLC against the two massive carriers, alleging that the insurers owed the state some $524 million in unclaimed death benefit proceeds that should have been escheated to Illinois.
Further, TARS says the state whistleblower act entitled Illinois to collect treble damages for a total of $1.57 billion. The case is a qui tam suit, meaning it’s brought on the state’s behalf and Illinois’ attorney general can decide to join as a plaintiff.