Yokoyama

BACKGROUND

Three consumer senior citizens, all residents of Hawaii, ini- tiated this action. Each purchased Midland’s annuities from an independent broker. Each signed Midland’s sales and dis- closure forms. Midland obligates its brokers, with respect to each sale, to provide certain documentation to consumers, to obtain consumers’ signatures on various forms, and to certify that nothing was said that is inconsistent with Midland’s bro- chures and disclosure forms. In particular, Midland requires its brokers to sign the following certification:

I certify that the Company disclosure material has been presented to the applicant. I have made no statements which differ in any significant manner from this material. I have not made any promises or guarantees about the future value of any non- guaranteed elements.

Plaintiffs allege that Midland’s documentation deceptively represents that its annuities protect its clients from the risks of the stock market and that Midland fails to include in its docu- mentation facts necessary to inform prospective purchasers of the true risks, possible detriments, and unsuitability of Mid- land’s long-term annuities for seniors. The plaintiffs’ com-…