Unum disputes guilty verdict
Unum Group improperly required two claimants to apply for Social Security disability benefits, a federal jury ruled yesterday, a practice critics say clogs the Social Security system but which Unum argues helps beneficiaries take advantage of claims they're entitled to.
The Federal District Court in Boston ruled that Unum, which is headquartered in Tennessee and employs 3,000 in Maine, required claimants to apply for Social Security when it knew they were ineligible for benefits, according to the Portland Press Herald. The lawsuits were part of several filed by a personal injury lawyer in Pittsburgh against private disability insurers over their practice of directing claimants to apply for Social Security benefits to reduce the company's payout.
Lawyers for the claimants claimed yesterday's ruling as a victory that will "make Unum reexamine its practices and screen out people it knows aren't eligible for Social Security," the paper reported one of the lawyers saying. But Unum says the verdict was in fact the company's victory, because the judge reduced the number of claims examined from 61 to seven, eliminating the majority of claims. Unum plans to appeal the verdict.
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