16.  Plaintiffs bring this nationwide class action on behalf of themselves and other  similarly situated variable annuity purchasers to halt and remedy the harm caused by Defendant  Jackson National Life Insurance Company’s misrepresentation of and systematic breach of its  contract provisions in connection with the calculation of surrender charges.    17.  Defendant Jackson National markets and sells its variable annuity products on a  national basis primarily through its network of individual sales agents, marketing organizations,  third party marketing organizations (“TPMOs”) brokerage firms and financial institutions.  JACKSON NATIONAL uses four principal distribution channels to effectuate the sale of its  variable annuities, which include independent broker/dealers, regional broker/dealers, financial  institutions and individual sales agents (collectively referred to herein as “Affiliated Agents”).   18.  A large portion of Defendant’s annuity business is effectuated through Jackson  National’s “deal direct” system, wherein individual agents contract with and are appointed by  Jackson National to promote and sell Jackson National products, including variable annuities.   19.  Defendant also utilizes marketing organizations and/or brokerage firms that hire  and manage groups of independent sales agents on behalf of Jackson National, who are trained to  sell Jackson National variable annuity products.  CLASS ACTION COMPLAINT-Page 8   20.  Defendant Jackson National prepares, disseminates and approves standardized  information, account service forms, brochures, illustrations, marketing and sales materials to  Affiliated Agents for effectuating the sale of variable annuities to customers, many of whom are  senior citizens. Jackson National markets its variable annuity products primarily to older  Americans and senior citizens in the Eastern District of Texas and nationwide.    21.  Jackson National designs a variety of variable annuity products and product  options that are represented to guarantee safety of principal, lifetime income streams, and market  growth opportunities.  However, Jackson National omits and fails to disclose that it designs its  variable annuity products and product options with features intended to discourage benefit  utilization and penalize undesired contract holder behavior.  Defendant uniformly omits and fails  to disclose material facts, costs, and risks associated with its design of these variable annuity  products.   22.  Jackson National omits and fails to disclose that certain of its product features  automatically result in adverse impacts to contract values unless contract holder action is taken.    23.  Jackson National also omits and fails to disclose that it engages in corporate  management actions which penalize Affiliated Agents from engaging in activities that would  result in utilization of contract holder benefits or from engaging in activities that would influence  contract holder behavior in such a way that may in fact be in the best interest of the contract  holder, but which is not profitable to the Defendant.    .  CLASS ACTION COMPLAINT-Page 9  37.  Plaintiffs bring this action as a class action pursuant to Rule 23 of the Federal  Rules of Civil Procedure.  Plaintiffs bring this action individually and on behalf of all similarly  situated persons as the Court may determine to be appropriate for class certification treatment,  pursuant to Federal Rules of Civil Procedure 23(a) and 23(b). Plaintiffs seek to represent a  nationwide class.   The Nationwide Surrender Charge Class   38.  The proposed Nationwide Surrender Charge Class is defined as follows:  All persons who, within the applicable statute of limitations, purchased a  Perspective family series, Elite Access series, or Retirement Latitudes series of  variable annuity products from Jackson National Life Insurance Company or its  affiliates, and incurred a surrender charge during their ownership of such product  (“Nationwide Surrender Charge Class”);  CLASS ACTION COMPLAINT-Page 14   39.  The Nationwide Surrender Charge Class is reasonably estimated to be in the  thousands or tens of thousands and is thus so numerous that joinder of all its members is  impracticable. The precise number of class members and their addresses are unknown to  Plaintiffs, but can be ascertained through Defendant’s records. Class Members may be notified  of the pendency of this action by mailing, publication or other notice.   40.  There is a well-defined community of interest in the relevant questions of law and  fact affecting the putative Nationwide Surrender Charge Class members concerning the breaches  of contract and the uniform application of surrender charges in violation of the contract  provisions.    41.  Common questions of law and fact predominate over any individual questions  affecting Nationwide Surrender Charge Class members, including, but not limited to, the  following:  • Whether Defendant violated the provisions of the variable annuity contracts in the  way in which it assessed surrender charges;  • Whether Defendant is liable for the excess surrender charges that it has imposed;  • Whether Defendant has harmed the members of the class in connection with living  benefits;  • Whether Defendant has harmed members of the class in connection with death  benefits;   • Whether Plaintiffs and members of the Nationwide Surrender Charge Class have  sustained damages;  • Whether Plaintiffs and the Nationwide Surrender Charge Class are entitled to  damages;   42.  Common questions of law and fact predominate over any individual questions  affecting Class members, including, but not limited to, the specific amount of damages that each  Plaintiff or class member has suffered.  CLASS ACTION COMPLAINT-Page 15   43.  With respect to each putative class, Plaintiffs’ claims are typical of those of the  absent class members. If brought and prosecuted individually, the claims of each class member  would require proof of many of the same material and substantive facts, rely upon the same  remedial theories and seek the same relief.   44.  Plaintiffs will fairly and adequately protect the interests of the classes and have no  interests adverse to or that directly and irrevocably conflict with the interests of other class  members.   45.  Plaintiffs are willing and prepared to serve the Court and the putative classes in a  representative capacity with all of the obligations and duties material thereto.   46.  Plaintiffs have retained the services of counsel who are experienced in complex  class action litigation. Plaintiffs’ counsel will adequately prosecute this action, and will  otherwise assert, protect and fairly and adequately represent Plaintiffs and all absent class  members.   47.  Class certification is appropriate under F.R.C. P. 23(b)(1), in that the prosecution  of separate actions by individual class members would create a risk of inconsistent or varying  adjudications, which would establish incompatible standards of conduct for the parties opposing  the class. Such incompatible standards of conduct and varying adjudications on the same  essential  facts, proof and legal theories would also create and allow the existence of inconsistent  and incompatible rights within the classes.   48.  Class certification is appropriate under F.R.C.P. 23(b)(3), in that common  questions of law and fact predominate over any questions affecting only individual class  members.  CLASS ACTION COMPLAINT-Page 16   49.  Moreover, a class action is superior to other methods for the fair and efficient   adjudication of the controversies raised in this Complaint because:  a) individual claims by the class members would be impracticable as the costs of  pursuit would far exceed what any one class member has at stake;  b) little individual litigation has been commenced over the controversies alleged  in this Complaint, and individual class members are unlikely to have an  interest in separately prosecuting and controlling individual actions;  c) the concentration of litigation of these claims in one forum will achieve  efficiency and promote judicial economy; and  d) the proposed class action is manageable.   50.  Excluded from the Class are Defendants, Defendants’ officers and directors, those  persons’ immediate families, and the successors and predecessors of any such excluded person or  entity.  The Nationwide Injunctive Surrender Charge Class   51.  The proposed Nationwide Injunctive Surrender Charge Class is defined as  follows:  All persons who, within the applicable statute of limitations, purchased a  Perspective family series, Elite Access series, or Retirement Latitudes series of  variable annuity products from Jackson National Life Insurance Company or its  affiliates (“Nationwide Injunctive Surrender Charge Class”);   52.  The Nationwide Injunctive Surrender Charge Class is reasonably estimated to be  in the thousands or tens of thousands and is thus so numerous that joinder of all its members is  impracticable. The precise number of class members and their addresses are unknown to  CLASS ACTION COMPLAINT-Page 17  Plaintiffs, but can be ascertained through Defendant’s records. Class Members may be notified  of the pendency of this action by mailing, publication or other notice.   53.  There is a well-defined community of interest in the relevant questions of law and  fact affecting the putative Nationwide Injunctive Surrender Charge Class members concerning  the breaches of contract and the uniform application of surrender charges in violation of the  contract provisions.    54.  Common questions of law and fact predominate over any individual questions  affecting Nationwide Injunctive Surrender Charge Class members, including, but not limited to,  the following:  • Whether Defendant has misrepresented the provisions of the variable annuity  contracts in the way in which it assessed surrender charges;  • Whether Defendants marketing materials, including the Prospectus for each variable  annuity product, misrepresent the way in which Jackson National will assess  Surrender Charges  • Whether  Defendant’s Affiliated Agents are disseminating false information about the  manner in which Surrender Charges are imposed  • Whether declaratory or injunctive relief should be granted to stop the offending  conduct   55.  Common questions of law and fact predominate over any individual questions  affecting Class members, including, but not limited to, the specific and uniform way that  Defendant has represented the calculation of Surrender Charges and the way in which Defendant  has imposed Surrender Charges.   56.  With respect to each putative class, Plaintiffs’ claims are typical of those of the  absent class members. If brought and prosecuted individually, the claims of each class member  CLASS ACTION COMPLAINT-Page 18  would require proof of many of the same material and substantive facts, rely upon the same  remedial theories and seek the same relief.   57.  Plaintiffs will fairly and adequately protect the interests of the classes and have no  interests adverse to or that directly and irrevocably conflict with the interests of other class  members.   58.  Plaintiffs are willing and prepared to serve the Court and the putative classes in a  representative capacity with all of the obligations and duties material thereto.   59.  Plaintiffs have retained the services of counsel who are experienced in complex  class action litigation. Plaintiffs’ counsel will adequately prosecute this action, and will  otherwise assert, protect and fairly and adequately represent Plaintiffs and all absent class  members.   60.  Class certification is appropriate under F.R.C. P. 23(b)(1), in that the prosecution  of separate actions by individual class members would create a risk of inconsistent or varying  adjudications, which would establish incompatible standards of conduct for the parties opposing  the class. Such incompatible standards of conduct and varying adjudications on the same  essential facts, proof and legal theories would also create and allow the existence of inconsistent  and incompatible rights within the classes.   61.  Class certification is appropriate under F.R.C.P. 23(b)(2), in that Defendant has  acted  or refused to act on grounds generally applicable to each class, making final declaratory,  injunctive  or other relief appropriate.   62.  Class certification is appropriate under F.R.C.P. 23(b)(3), in that common  questions of law and fact predominate over any questions affecting only individual class  members.  CLASS ACTION COMPLAINT-Page 19   63.  Moreover, a class action is superior to other methods for the fair and efficient   adjudication of the controversies raised in this Complaint because:  a) individual claims by the class members would be impracticable as the costs of  pursuit would far exceed what any one class member has at stake;  b) little individual litigation has been commenced over the controversies alleged  in this Complaint, and individual class members are unlikely to have an  interest in separately prosecuting and controlling individual actions;  c) the concentration of litigation of these claims in one forum will achieve  efficiency and promote judicial economy; and  d) the proposed class action is manageable.   64.  Excluded from the Class are Defendants, Defendants’ officers and directors, those  persons’ immediate families, and the successors and predecessors of any such excluded person or  entity.  65.  Plaintiffs repeat and reallege each and every allegation contained above as if fully  set forth herein.   66.  Jackson National’s assessment of surrender charges was done consistently and  uniformly in a manner contrary to the terms and conditions of the applicable contracts. In  particular, Jackson National’s assessment of a surrender charge on a surrender charge was a  violation of the variable annuity contracts issued by Jackson National.    67.  Jackson National’s actions in violation of the variable annuity contracts were  done intentionally or recklessly.   CLASS ACTION COMPLAINT-Page 20   68.  All conditions precedent to the liability or obligations of Jackson National have  occurred or have been waived.    69.  Plaintiffs and each member of the Nationwide Surrender Charge Class have  suffered damage in an amount to be determined. Plaintiffs allege that the total damages to the  Nationwide Surrender Charge Class exceed the sum of five million dollars ($5,000,000).   70.  Plaintiffs repeat and reallege each and every allegation contained above as if fully  set forth herein.   71.  Plaintiffs have a fiduciary relationship with Jackson National.  Jackson National  controlled the premium amounts and had complete control of the calculation of amounts to be  deducted as surrender charge.   72.  Jackson National breached its fiduciary duties to Plaintiffs by intentionally or  recklessly performing calculations that were contrary to the contract provisions and failing to  inform Plaintiffs or members of the Class that they were acting in contravention of the contract.   Jackson National breached its fiduciary duty to Plaintiffs by placing its own interest above that  of Plaintiffs.   73.  Jackson National’s acts, omissions and false representations directly and  proximately caused injury to Plaintiffs, which resulted in damages to be determined, but  consisting of wrongful surrender charges collected, reduced living benefits under the Jackson  National contracts, and reduced death benefits under the Jackson National contracts.     74.  Plaintiffs seek damages proximately caused by Jackson National.  CLASS ACTION COMPLAINT-Page 21  Punitive Damages.   75.  Plaintiffs’ injury resulted from Jackson National’s intentional or reckless acts,  which entitles Plaintiffs to exemplary damages.  Jackson National knew, or was severely reckless  in not knowing, that its actions were in violation of the contract terms and provisions, and that its  omissions were material and harmful to Plaintiffs and all members of the class.   76.  All conditions precedent to Plaintiffs’ claim for relief have been performed or  have occurred.  77.  Plaintiffs repeat and reallege each and every allegation contained above as if fully  set forth herein.   78.  By virtue of its dissemination of marketing materials and other uniform  documents describing the variable annuities purchased by members of the putative class and  through the uniform sales pitches made by its agents, Jackson National has disseminated false  information to all members of the putative class about surrender charges.  The way in which  Jackson National describes the imposition of Surrender Charges is very different than the way in  which Jackson National actually calculates and imposes the Surrender Charges. These  misrepresentations, made to Plaintiffs in this district, were made negligently, or recklessly  without regard for the truth of such representations. All Plaintiffs and class members are deemed  to have relied on these material misrepresentations, and have suffered damages as a result of  these misrepresentations in that the Surrender Charges actually imposed are more than what was  represented to the members of the putative class.   CLASS ACTION COMPLAINT-Page 22  Injunctive Relief   79.  Plaintiffs repeat and reallege each and every allegation contained above as if fully  set forth herein.   80.  Jackson National’s actions in violation of the terms of the variable annuity  contracts continue and are ongoing.    81.  Plaintiffs seek an injunction to prohibit Jackson National from continuing to  violate the terms of the variable annuity contracts with respect to the calculation of surrender  charges.   82.  Plaintiffs have no adequate remedy at law because it would require successive  lawsuits to compensate Plaintiffs and members of the Class for the ongoing harm and the only  effective way to protect the class members is to enjoin Defendant from the improper conduct.    83.  All conditions precedent to Plaintiffs’ claim for relief have been performed or  have occurred.   84.  Injunctive relief is appropriate for certification under Rule 23(b)(2) because  Jackson National has acted on grounds and in ways that apply generally to all class members, so  that final injunctive relief or corresponding declaratory relief is appropriate respecting the class  as a whole.   Plaintiffs’ Demand for Jury Trial   85.  Plaintiffs hereby demand a trial by jury.  WHEREFORE, PREMISES CONSIDERED, Plaintiffs pray for relief and judgment as  follows:  a.  Determining that this action is a proper class action under Rule 23 of the Federal  CLASS ACTION COMPLAINT-Page 23  Rules of Civil Procedure;  b.  Awarding damages to the class in the amount of improper surrender charges paid  by Plaintiffs and the members of the Class,   c.  enjoining the improper calculation of surrender charges upon withdrawals made  by Plaintiffs and  the Class members from their Jackson National Life Insurance Company  variable annuity contracts;  d.  Awarding compensatory damages in favor of Plaintiffs and the other Class  members against Jackson National for all damages sustained as a result of Defendants’  wrongdoing, in amounts to be proven at trial, including pre-judgment interest thereon;  e.  Awarding other appropriate injunctive relief against Jackson National such that  the contracts of Plaintiffs’ and the other Class members’ can be properly managed pending trial  of this case;  f.  Awarding Plaintiffs their reasonable costs and expenses incurred in this action,  including counsel fees and expert fees as may be authorized by law; and  g.  Such other and further relief as the Court may deem just and proper.  CLASS ACTION COMPLAINT-Page 24  Dated: November 29, 2016.  Respectfully submitted,  Breach of Contract   Breach of Fiduciary Duty Against Jackson National   Jackson National’s Conduct   Negligent Misrepresentation  