Ten insurance agents who say they were tricked into joining a subsidiary of AXA with promises of joining fees and possible shares in the company are suing for HK$480 million.
The agents, including seven who had previously worked at AXA's competitor American International Assurance (Bermuda), filed the claim against Integrity Financial Advice Network, two members of Integrity's management team and the chief executive of its holding company, and AXA Chinese Region Insurance Company, at the High Court on Monday.
Among the seven former AIA staff are a former senior director, Lau Kong-kei. The other three plaintiffs had worked for Prudential Insurance and Massmutual Insurance.
AXA declined to comment because of the ongoing legal proceedings.
The claims relate to agreements for a business scheme which the agents say AXA and Integrity terminated in November and December last year.
The sum sought also includes commissions, bonuses and benefits that the agents claim they lost as a result of leaving their previous jobs and joining the business scheme.
The court filing says that around 2009, Denny Chan, chief executive of Integrity's holding company, and Kevin Lee and the head of network management, Chris Chan, along with members of AXA's management, worked out a business model which promised agents who joined the scheme the chance to own shares in it.