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Article: Judge dismisses suit against bankrupt Brooke Corp.
- Article from:
- AP Online
- Article date:
- August 13, 2009
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A federal judge has dismissed a lawsuit accusing bankrupt Brooke Corp. and its financing arm of racketeering and fraud, saying the claims are not specific enough.
Scores of insurance agents sued Overland Park, Kan.-based Aleritas Capital Corp. in April, claiming it and Brooke inflated the price of insurance agencies they sold to the plaintiffs around the country and tacked on fees for services they never provided.
The plaintiffs later added six banks as defendants, alleging that the banks took over Aleritas' loans to the agents and directed that they receive the agents' commissions.
U.S. District Judge Carlos Murguia on Wednesday tossed out the suit, determining that ...