Tr?id=566623520170033&ev=PageView&noscript=1

LPL Financial Faces Class Action Over Phoenix Annuity Disclosures

Posted on July 15th, 2026 at 12:52 PM
LPL Financial Faces Class Action Over Phoenix Annuity Disclosures

From the desk of Jim Eccleston at Eccleston Law

LPL Financial faces a proposed class action lawsuit alleging that the firm failed to warn annuity investors about the declining financial condition of Phoenix PHL Variable Insurance Company.

As reported by AdvisorHub, the lawsuit accuses LPL of breaching its fiduciary duty and engaging in fraudulent concealment by failing to disclose information about the insurer's financial deterioration while continuing to collect commissions associated with the annuity products.

Plaintiff alleges that LPL knew for years that Phoenix faced significant financial challenges. AdvisorHub reports that ratings agencies issued a series of downgrades beginning as early as 2009. Although LPL allegedly stopped offering the annuity product to new investors, the firm did not notify existing policyholders about the insurer's condition, the complaint claims.

Plaintiff contends that LPL remained silent even though investors could have explored other options, including transferring assets or withdrawing funds before regulators intervened. According to the complaint LPL continued receiving commissions tied to the annuity contracts while failing to disclose material information about the insurer's financial health.

The complaint points to a 2015 regulatory filing in which the insurer warned that it could face rehabilitation proceedings if it failed to satisfy capital requirements. The lawsuit further alleges that LPL did not notify clients after Standard & Poor's downgraded Phoenix to junk status in 2019, according to AdvisorHub.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, lpl financial, class action lawsuit, annuity disclosures, securities litigation, phoenix phl variable insurance

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1785858278 Law
August 4, 2026
SEC Fines Former LPL Broker $125,000 for Undisclosed Conflicts in Private Securities Offerings

The Securities and Exchange Commission (SEC) has censured a former LPL Financial broker and imposed a $125,000 civil penalty after finding that he failed to disclose conflicts of interest related to private real estate securities offerings that generated nearly $1.5 million in compensation, as reported by AdvisorHub.

1785772777 Law
August 3, 2026
FINRA Launches Review of High-Risk Structured Notes Sales and Supervision

The Financial Industry Regulatory Authority (FINRA) has launched a regulatory sweep examining the sale of high-risk structured products, with particular attention on non-principal protected "worst-of" structured notes, according to AdvisorHub.

1785531573 Law
July 31, 2026
Former Alabama Financial Advisor Barred After Selling His Practice

The U.S.