(CNS) – Tom Hanks and Rita Wilson have settled part of their lawsuit alleging their former insurance agent overcharged them millions of dollars by insuring them multiple times for the same coverage and that their business managers did not detect the problem and tell them..
In an action filed in March 2011 in Los Angeles Superior Court, the married actors, along with their business entities, allege breach-of-contract and fraud by Jerry Goldman and the J.B. Goldman Insurance Agency. The insurance firm provided coverage to the pair for 22 years.
The celebrity couple later amended their suit to add as defendants Meschures, Thompson, Snyder, Pocras & Levin LLP, their business management firm since 1998. The company was obligated to verify the Goldman agency was charging fair prices for its services, the suit states.
Last Tuesday, Los Angeles Superior Court Judge John Segal approved a settlement between Hanks,
Wilson and MTSPL. The Goldman agency also agreed to drop its cross-complaint for indemnity against MTSPL.
Hanks and Wilson are settling for “payment of a confidential amount” resolving all their claims against MTSPL, according to court papers filed by lawyers for the business management firm. “Further, the settlement figure reached between plaintiffs and MTSPL reimburses (the actors) for certain alleged losses suffered by them by the alleged actions of the Goldman defendants and MTSPL.”
MTSPL attorneys state the settlement amount is confidential due to the “legitimate privacy concerns” of Hanks and Wilson.
According to the court papers filed on behalf of Hanks and Wilson, their new insurance broker hired in February 2011, Shel Bachrach, told MTSPL officials he reviewed and analyzed “various policies, coverage and premiums charged by the Goldman defendants … (and) he was concerned that the insurance premiums from policies … appeared extraordinarily high for the coverage provided.”
In addition to overbilling, Goldman also provided duplicate insurance coverage, the suit alleges.