Lawsuit filed against Dodgers owner Mark Walter over undisclosed federal probe of policyholders

A class-action lawsuit has been filed in Florida against Los Angeles Dodgers owner Mark Walter and several insurance companies he controls, alleging they failed to inform customers of an ongoing federal investigation and directed policyholders’ funds toward Walter’s other companies. The suit was filed Wednesday in the U.S. District Court in Miami by Ira Rosner, a 67-year-old client from Florida.

As Bleacher Report reports, the suit names as defendants Delaware Life Insurance Co., Clear Spring Life and Annuity, TWG Global Holdings, the investment firm Guggenheim Partners and Mark Walter himself. Rosner says he bought a policy from Delaware Life in April and had until the end of May to withdraw the money without penalty, but the company did not notify him of the investigation until June. He seeks a jury trial and damages for negligent misrepresentation, breach of contract and aiding and abetting fraud.

The lawsuit document describes Walter as having been under investigation since last year by the U.S. Attorney’s Office in Manhattan and the Securities and Exchange Commission (SEC), following a whistleblower complaint alleging that loans between companies within his portfolio were inaccurately reflected. TWG Global, the holding company through which Walter controls Delaware Life and Clear Spring, denied involvement in wrongdoing in a statement last month. In the same period, Walter and co-owner Todd Boehly have made other major transaction moves, including the sale of their stakes in Chelsea and the deal to sell the Los Angeles Lakers, a process being reviewed by the league.

According to Bleacher Report, the case will continue to be handled in court and the lawsuit seeks compensation for alleged damages; the parties involved have made no other public announcements for now.