Kyle Busch and his wife, Samantha Busch, have reached a settlement in their lawsuit against Pacific Life Insurance Company, agent Rodney Smith, and Red River LLC, bringing an end to a dispute over alleged mismanagement of their retirement funds. The settlement was jointly announced Thursday in a filing with Judge Matthew Orso of the North Carolina federal court, according to court documents.
The Busches initially filed suit in Lincoln County, N.C., in October 2025, claiming they were misled into purchasing complex life insurance policies that resulted in losses exceeding $8.58 million. The couple sought over $8 million in damages, alleging a scheme orchestrated by Smith and facilitated by Pacific Life. The lawsuit centered on five Indexed Universal Life Policies purchased between 2018 and 2022, which were marketed as providing substantial retirement income, but ultimately were projected to lapse without delivering the promised benefits.
Pacific Life, in a court filing, argued that the claims were time-barred and that the Busches had not fully reviewed the details of the insurance plan. However, the parties ultimately agreed to a confidential settlement, the terms of which have not been disclosed. The joint filing stated that all parties will bear their own legal fees and costs.
“The Parties are in the process of documenting and finalizing their settlement papers and intend to file a stipulation or motion for dismissal of this action within the next 30 days,” the court filing read. The court has been asked to stay all pending deadlines even as the settlement is finalized.
The case garnered significant attention, particularly within the financial advisory community, as it highlighted the potential risks associated with Indexed Universal Life (IUL) policies. Experts noted that IUL policies, while offering potential benefits, require diligent management and understanding of their complex features. The lawsuit prompted discussion about the responsibilities of insurance agents and the need for clear disclosure of policy risks.
According to a complaint filed in the case, Kyle and Samantha Busch accused Rodney Smith of duping them and Pacific Life of abetting the agent. The complaint alleged that the policies were not suitable for the Busches’ financial situation and that they were not adequately informed about the potential downsides.
The parties have requested the court to stay all pending deadlines as they work to finalize the settlement and file a joint stipulation or motion for dismissal within the next 30 days.