On September 8, the Ontario Superior Court of Justice approved the settlement of the class action against Sun Life Financial (SLF). The lawsuit had been initiated by holders of four universal life insurance products purchased from Metropolitan Life Insurance Company between 1985 and 1998.
SLF had inherited these contracts through past acquisitions made in Canada. The company announced the draft regulation late last April.
The settlement amount proposed by FSL—$213.5 million—was confirmed by the judgment of September 23, 2026.
Misrepresentations are alleged to have been made by agents regarding the permanent nature of the product, whereas coverage ended at the policyholder’s 90th birthday, as well as regarding the premium cap.
The law firm Kim Spencer McPhee is responsible for distributing these funds to the approximately 100,000 policyholders. The legal fees awarded by the court to the firm representing the action are the subject of a separate part of the decision.
The law firm behind the class action worked for eight years before securing funding from the provincial fund used to finance such lawsuits. The legal battle lasted a total of 14 years.
