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Supreme Court of Delaware


Wal-Mart Stores, Inc. v. AIG Life Ins. Co., 172, 2005

Dismissal for failure to state a claim of plaintiffs' complaint arising out of their purchase of corporate-owned life insurance (COLI) policies that were supposed to generate significant tax benefits is reversed in part where the complaint adequately pled that defendants sold plaintiffs a product that was an economic sham designed to create tax deductions, knowing that their product was flawed, and without disclosing that those flaws jeopardized the favorable tax treatment at issue.

Appellate Information

  • Decided 06/06/2006
  • Published 06/12/2006

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Court

  • Supreme Court of Delaware

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