Thursday, Lincoln Financial Group (LNC), said that a U.S. District Court in Iowa has granted a judgment in favor of Lincoln National Life Insurance Co. and validated a jury's decision in a patent infringement suit against Transamerica Life Insurance Co. and related Aegon USA companies.
The Radnor, Pennsylvania-based provider of insurance and investment management businesses said the favorable judgment ruling related to a computerized method for administering variable annuity products that combine guaranteed minimum payment features with systematic withdrawal programs.
According to the company, the judge, while upholding the jury's decision, adjudged that Lincoln's '201 patent was not invalid, and that Transamerica infringed and damages to the tune of $13.1 million be paid for patent infringement. Furthermore, the judge issued an injunction against Transamerica ordaining the companies from using a computer to administer new or existing riders in any infringing manner.
Earlier in February 2009, a jury adjudicated in favor of Lincoln National Life Insurance Co. and against three Aegon USA companies, the Transamerica Life Insurance Co., Transamerica Financial Life Insurance Co., and Western Reserve Life Assurance Co. of Ohio.
Meanwhile, Transamerica also filed what it labeled an "emergency" motion seeking the permanent injunction be deferred during the appeal, but the Federal Circuit denied Transamerica's emergency motion. The appeal and motion are currently being considered by the Federal Court.
LNC is currently trading at $16.41, down $0.01 or 0.06%, on a volume of 4.38 million shares on the NYSE.
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