Mark Walter and insurance firms sued over alleged fraud

Los Angeles Dodgers owner Mark Walter and several insurance companies are facing a class-action lawsuit alleging insurance fraud and failure to disclose an ongoing federal investigation to policyholders.

The lawsuit, filed in U.S. District Court in Miami, names Walter, Delaware Life Insurance Co., Clear Spring Life and Annuity, TWG Global Holdings, and Guggenheim Partners as defendants. The complaint alleges that these entities misrepresented how investments backed by policyholders were connected to Walter-related companies. It further claims that policyholders' funds were covertly transferred into a fund supporting Walter’s broader business network.

The legal action follows a federal investigation by the U.S. Attorney's Office in Manhattan and the Securities and Exchange Commission. This probe was reportedly triggered by a whistleblower complaint regarding alleged misrepresented loans between companies within Walter’s business portfolio. The lawsuit seeks damages for negligent misrepresentation, breach of contract, and aiding and abetting fraud, with tens of thousands of annuity buyers nationwide expected to be part of the class.