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Abstract: 

Plaintiff sought certification of the suit as a class action, defining the class as: [A]ll those U.S taxpayers who (1) were life insurance policyholders in mutual life insurance companies that have demutualized (i.e., converted from mutual companies to stock companies), and (2) have also: (a) paid Federal income tax on cash received in lieu of stock in the demutualization transaction or paid Federal income tax on the subsequent disposition of the stock received in the demutualization transaction based on the Defendant’s stated position that they were not entitled to deduct any amount of tax basis in connection with the demutualization payments or the sale of the stock received; (b) filed claims with Defendant seeking refund of part or all of the tax paid in the transactions referred to in (a); and (c) either had those claims denied by Defendant or had Defendant [take] no action on those claims and more than six months has passed from the date of filing those claims with the Defendant as of the date that the Court certifies the class or as of some other date selected by the Court. A reading of the case suggests that the court was denying the motion for certification only temporarily, and was in fact instructing counsel for the prospective class on what it expected in order to be able to certify the class.

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