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PENNSYLVANIA RECORD

Tuesday, April 23, 2024

Client alleges Liberty Life unlawfully denied disability benefits

Disability

PHILADELPHIA — A former Wells Fargo employee is suing Liberty Life, alleging she was wrongfully denied disability benefits.

Eileen Finnegan filed a lawsuit Feb. 16 in U.S. District Court for the Eastern District of Pennsylvania against Liberty Life Assurance, citing violation of the Employee Retirement Income Security Act of 1974 (ERISA).

According to the complaint, Finnegan was a full-time employees of Wells Fargo & Company from 1997 until April 1, 2014, when she became disabled under the terms of a disability plan provided by Liberty Life. The plaintiff states she suffers from major depression, anxiety disorder, chronic headaches and high blood pressure.

At first, Finnegan claimed short term disability (STD) when she was no longer able to work until Sept. 30, 2014, at which time she claimed long term disability (LTD).

Beginning Oct. 1, 2014, the lawsuit states, the defendant paid LTD benefits to the Finnegan until she was denied payments in a Dec. 9 letter. Finnegan alleges she filed a timely appeal, which was also denied. She argues that denial of LTD benefits is in direct contradiction of its own STD disability determinations, is unsubstantiated, and capricious.

Finnegan seeks reinstatement into the plan, past-due disability benefits, prejudgment interest, and attorney fees. She is represented by attorney Joseph Capitan of Martin LLC in Philadelphia.

U.S. District Court for the Eastern District of Pennsylvania Case number 2:16-cv-00743-ER

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