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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 2, 2007
CITIZENS, INC.
(Exact name of registrant as specified in its charter)
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COLORADO
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0-16509
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84-0755371 |
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(State or other jurisdiction
of incorporation
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(Commission
File Number)
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(IRS Employer
Identification No.) |
400 East Anderson Lane
Austin, Texas 78752
(Address of principal executive offices) (Zip Code)
(512) 837-7100
Registrants telephone number, including area code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 8.01 OTHER EVENTS.
Citizens, Inc. is a defendant in a lawsuit originally filed in Texas District Court, Austin,
Texas, now styled Citizens Insurance Company of America, Citizens, Inc., Harold E. Riley and Mark
A. Oliver, Petitioners v. Fernando Hakim Daccach, Respondent, in which a class was originally
certified by the trial court, and affirmed by the Court of Appeals for the Third District of Texas.
We appealed the grant of class status to the Texas Supreme Court, and oral arguments occurred on
October 21, 2004. On March 2, 2007, the Texas Supreme Court reversed the Court of Appeals
affirmance of the trial courts class certification order, decertified the class and remanded the
case to the trial court for further proceedings consistent with the Texas Supreme Courts opinion.
The suit alleges that certain life insurance policies which we made available by our primary life
insurance subsidiary to non-U.S. residents, when combined with a policy feature which allow policy
dividends to be assigned to two non-U.S. trusts for the purpose of accumulating ownership of our
Class A common stock, along with allowing the policyholders to make additional contributions to the
trusts, were actually offers and sales of securities that occurred in Texas by unregistered dealers
in violation of the registration provisions of the Texas securities laws. The remedy sought was
rescission and return of the insurance premium payments. We intend to continue to pursue a
vigorous defense in any remaining proceeding. However, we expect financial exposure to us, if any,
would be significantly less then had the purported class not been decertified.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
None.
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CITIZENS, INC.
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By: |
/s/ Mark A. Oliver
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Mark A. Oliver, President |
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Date: March 8, 2007