EFG Bank AG, Cayman Branch v. Transamerica Life Insurance Company

I. INTRODUCTION AND BACKGROUND

The Court previously set out the factual and procedural background of this case in its July 10, 2017 and November 4, 2019 orders. Accordingly, the Court only recites the background that gives rise to the present motion to dismiss. Plaintiffs filed this action against defendant Transamerica Life Insurance Company (“Transamerica”) on October 31, 2016. Dkt. 1. Plaintiffs thereafter filed a first amended complaint on March 30, 2017, dkt. 24, which Transamerica moved to dismiss on May 15, 2017, dkt. 31. On July 10, 2017, the Court denied Transamerica’s motion to dismiss plaintiffs’ first amended complaint. Dkt. 44. In the first amended complaint, plaintiffs asserted a claim for breach of contract against Transamerica based on Transamerica’s “increasing MDRs for reasons other than “expectations as to future cost factors’ and in order to “recover past losses.’” Dkt. 44 at 10. Plaintiffs alleged that Transamerica’s MDR increases violated the terms of plaintiffs’ universal life insurance policies, including by, inter alia, allowing Transamerica to circumvent the minimum guaranteed interest rate accrued on the…