What Is the Kyle Busch Lawsuit?
The Kyle Busch lawsuit is a single civil case in which NASCAR champion Kyle Busch and his wife Samantha sued Pacific Life Insurance Company, insurance agent Rodney A. Smith, and Red River LLC over indexed universal life insurance policies. It is not a class action or a multidistrict litigation.
The Buschs filed the case in Lincoln County, North Carolina, on October 14, 2025. Pacific Life removed it to the U.S. District Court for the Western District of North Carolina on November 20, 2025, where it carried case number 5:25-cv-00195. The couple sued individually and as trustees of two irrevocable life insurance trusts.
The Buschs alleged the policies were sold as safe, self-funding, tax-free retirement plans. They claimed $10.4 million in premiums produced net out-of-pocket losses of $8,582,007. The case settled in early 2026.
“The Complaint in this action asserts claims that allegedly arise out of 'the design, sale, and administration' of several Pacific Life indexed universal life insurance policies (the 'Policies') sold to Plaintiffs by Rodney Smith.”
Source: Pacific Life Insurance Company, Notice of Removal describing the complaint, Busch v. Pacific Life Insurance Company, No. 5:25-cv-00195 (W.D.N.C. Nov. 20, 2025), Doc. 1, paragraph 11
Why Was the Kyle Busch Lawsuit Filed?
The Kyle Busch lawsuit was filed because the Buschs alleged that Pacific Life and agent Rodney A. Smith sold them indexed universal life policies as a safe retirement plan that did not work as promised.
According to the complaint as summarized in court filings, Smith approached the couple in 2017 as a retirement planner and said the policies would be fully funded after a limited number of premium payments. Busch said he was told that paying $1 million a year for five years would let him withdraw about $800,000 a year after age 52.
Doubt began when a sixth annual premium notice arrived on what Busch understood to be a five-year plan. Busch said an independent firm then reviewed the policies and found they would lapse within 16 months.
Busch also said the couple went public because other, less wealthy buyers had lost savings in similar policies, according to the Associated Press. Pacific Life disputes the couple's account, as the response section below explains.
What Harms Does the Kyle Busch Lawsuit Allege?
The Kyle Busch lawsuit alleges four distinct harms, all consequences of the same policy purchases rather than separate events. The complaint pleaded five claims, including negligence, violation of North Carolina's Unfair and Deceptive Trade Practices Act, breach of fiduciary duty, and negligent misrepresentation.
Pacific Life denied responsibility and no court ruled on any allegation, so each harm below remains an allegation, not a finding.
Premium Loss
Premium loss, in an insurance dispute, is money a policyholder paid in premiums that cannot be recovered through cash value, benefits, or refunds.
The complaint alleged the Buschs paid $10.4 million in premiums and suffered net out-of-pocket losses of $8,582,007. An independent review reportedly projected that the policies would lapse within 16 months.
A premium loss claim here depends on proving the policies were misrepresented, not only that they performed poorly.
Undisclosed Commissions and Charges
An undisclosed charge is a cost deducted from an insurance policy that the buyer was not clearly told about before purchasing.
The complaint alleged misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges. Busch separately said the agent took an up-front 35 percent commission that he learned about only after the purchase.
The complaint also alleged Pacific Life failed to supervise the agent despite an alleged disciplinary history and put commissions ahead of policyholder interests.
Lost Retirement Income
Lost retirement income is the expected future income a person no longer receives because a retirement funding vehicle failed or lapsed.
The Buschs alleged they were promised tax-free retirement income through policy loans after a limited number of premium payments. They claimed the policies instead needed continued funding to avoid lapse, so the expected income never arrived.
Pacific Life disputes this account, as the response section below describes.
Emotional Distress and Financial Instability
Emotional distress, as a legal harm, is mental suffering such as anxiety or anguish that a plaintiff says resulted from a defendant's conduct.
The complaint alleged the Buschs suffered severe financial instability and emotional distress, along with missed chances to invest in more suitable financial products.
The court filings reviewed for this page show no evidence presented on these points, because the case settled before trial.
What Is the Current Status of the Kyle Busch Lawsuit?
The current status of the Kyle Busch lawsuit is closed. The Buschs, Pacific Life, Rodney A. Smith, and Red River LLC reached a confidential settlement, and the parties jointly moved for dismissal with prejudice on March 13, 2026.
A dismissal with prejudice generally means the same claims cannot be filed again. The most recent filing on the public CourtListener docket is that joint stipulation, so this page does not confirm a separate court order of dismissal.
Busch v. Pacific Life Insurance Company
Kyle Busch and Samantha Busch, individually and as trustees of their irrevocable life insurance trusts, sued Pacific Life, Rodney A. Smith, and Red River LLC in Lincoln County Superior Court. Pacific Life, served on October 23, 2025, removed the case to federal court on November 20, 2025.
The Buschs filed an amended complaint on January 13, 2026, and Pacific Life moved to dismiss it on January 22, 2026.
| Court | U.S. District Court, Western District of North Carolina, Statesville Division |
| Federal case number | 5:25-cv-00195 |
| State case number | 25CV002675-540, Lincoln County Superior Court |
| Judge | Matthew E. Orso, per the case caption |
| Filed | October 14, 2025, in state court |
| Removed to federal court | November 20, 2025 |
| Plaintiffs' counsel | RP Legal LLC and James McElroy & Diehl, P.A. |
| Pacific Life's counsel | Parker Poe Adams & Bernstein LLP and Carlton Fields, P.A. |
| Outcome | Settled; joint stipulation of dismissal with prejudice filed March 13, 2026 |
Removal to federal court did not change the claims. The Buschs pleaded the case under North Carolina law, and Pacific Life relied on diversity of citizenship, since the plaintiffs live in North Carolina and the defendants are citizens of Nebraska, California, and Arizona.
Did Kyle Busch Settle the Lawsuit?
Yes. Kyle and Samantha Busch settled the lawsuit with Pacific Life, Rodney A. Smith, and Red River LLC in early 2026, but the settlement terms and any payment amount were never publicly disclosed.
The roughly $8.5 million in headlines describes the alleged loss, not a payout, and no source reviewed confirms what, if anything, Pacific Life paid. Pacific Life said both sides worked constructively toward a confidential, mutually acceptable result.
The dismissal filing said every party would bear its own fees and costs, so neither side was ordered to cover the other's legal expenses.
A settlement without a ruling does not mean Pacific Life admitted fault, and it does not mean the Buschs' claims lacked merit, because no judge or jury decided the allegations.
Kyle Busch Lawsuit Updates
Here are the latest Kyle Busch lawsuit updates, covering new court filings, rulings, and case-count reports as they're confirmed. The Busch v. Pacific Life Insurance Company case settled as of October 2026; the terms and timing are covered in the entries below. The timeline below tracks every confirmed development from the first filing forward.
Full Kyle Busch Lawsuit Timeline
Kyle Busch Dies at 41 After the Lawsuit Had Ended
The Busch family, Richard Childress Racing, and NASCAR announced on May 21, 2026 that Kyle Busch had died at age 41, more than two months after the parties filed the dismissal in Busch v. Pacific Life Insurance Company. The announcement gave no cause of death, and the lawsuit had already ended.
Parties File Joint Stipulation of Dismissal With Prejudice
Kyle and Samantha Busch and defendants Pacific Life, Rodney A. Smith, and Red River LLC jointly asked the Western District of North Carolina on March 13, 2026 to dismiss case 5:25-cv-00195 with prejudice, with each side bearing its own fees and costs.
Notice of Settlement Filed in Federal Court
A notice of settlement filed on February 26, 2026 told the Western District of North Carolina that the Buschs and Pacific Life were documenting a settlement and expected to file a dismissal within 30 days. The filing disclosed no terms.
Pacific Life Moves to Dismiss the Amended Complaint
Pacific Life asked the Western District of North Carolina on January 22, 2026 to dismiss the Buschs' amended complaint, citing signed policy disclosures and the three-year statute of limitations. The motion described five policies bought between 2018 and 2022 that carried more than $90 million in death benefit protection.
Buschs File an Amended Complaint
Kyle and Samantha Busch filed an amended complaint with a jury demand against Pacific Life, Rodney A. Smith, and Red River LLC in case 5:25-cv-00195 on January 13, 2026, restating the misrepresentation claims in federal court.
Court Extends Pacific Life's Deadline to Respond
The Western District of North Carolina granted Pacific Life a consent extension on November 26, 2025, moving its deadline to answer the Busch complaint to January 15, 2026.
Federal Case Assigned to a District Judge and Magistrate Judge
The Western District of North Carolina assigned case 5:25-cv-00195 to District Judge Kenneth D. Bell and Magistrate Judge David Keesler on November 24, 2025, and a later caption lists Judge Matthew E. Orso as the presiding judge.
Pacific Life Removes the Case to Federal Court
Pacific Life filed a notice of removal on November 20, 2025, moving the Busch lawsuit from Lincoln County Superior Court case 25CV002675-540 to the Western District of North Carolina on diversity grounds, with the other two defendants consenting.
Buschs and RP Legal Announce the Lawsuit Publicly
Plaintiffs' counsel RP Legal published a press release on October 28, 2025 announcing that Kyle and Samantha Busch had sued Pacific Life over indexed universal life policies and that they lost millions of dollars.
Pacific Life Is Served With the Complaint
Pacific Life received the Busch complaint through its registered agent on October 23, 2025, which started the 30-day window for removing the case to federal court.
Buschs File Suit in Lincoln County Superior Court
Kyle Busch and Samantha Busch filed their complaint against Pacific Life, Rodney A. Smith, and Red River LLC in Lincoln County, North Carolina, on October 14, 2025, as case 25CV002675-540.
How Did Pacific Life and Rodney Smith Respond to the Kyle Busch Lawsuit?
Pacific Life denied responsibility for the Buschs' losses and moved to dismiss the amended complaint on January 22, 2026, arguing the couple signed policy disclosures and did not fully fund the policies.
The motion made three arguments. Both Buschs signed documents acknowledging the policy terms, including planned premiums over 30 years. They allowed some policies to lapse and surrendered the others. Claims for breach of fiduciary duty and negligent misrepresentation came seven years after the first purchase, outside the three-year statute of limitations Pacific Life cited.
Pacific Life also said each policy came with a cover letter urging a careful read and a 20-day cancellation window with a premium refund.
| Defendant | Role alleged in the complaint | Response |
|---|---|---|
| Pacific Life Insurance Company | Insurer that issued the policies and allegedly failed to supervise the agent | Moved to dismiss on January 22, 2026 |
| Rodney A. Smith | Arizona-based agent who allegedly designed and sold the policies | Reportedly denied most allegations |
| Red River LLC | Nevada firm whose sole member is Smith | Reportedly denied most allegations with Smith |
Regulators had already set illustration rules for these products. The National Association of Insurance Commissioners adopted Actuarial Guideline 49 for indexed universal life illustrations in 2015, and its successor, AG 49-A, covers policies sold on or after December 14, 2020. No court or regulator ruled in the Busch case on whether any illustration complied with those rules.
When the suit was filed, Pacific Life said it does not comment on individual matters and that its life insurance products each have different characteristics.
Is the Kyle Busch Lawsuit Related to the NASCAR Antitrust Lawsuit?
No. The Kyle Busch lawsuit is a private insurance dispute with no legal connection to the NASCAR antitrust lawsuit, even though both were heard in the Western District of North Carolina.
The Associated Press noted the shared court when Pacific Life moved to dismiss. Racing teams in the antitrust case sued NASCAR itself, while the Buschs sued an insurer and an insurance agent.
None of the sources reviewed reports a class action or consolidated proceeding tied to the Busch case, although the Buschs' attorney said other policyholders had reported similar losses.
| Case | Plaintiffs | Defendants | Subject |
|---|---|---|---|
| Busch v. Pacific Life (this page) | Kyle and Samantha Busch | Pacific Life, Rodney A. Smith, Red River LLC | Indexed universal life insurance policies |
| NASCAR antitrust lawsuit (separate) | Racing teams led by Michael Jordan, per the AP | NASCAR | Antitrust claims against NASCAR |
For the racing case, see the Michael Jordan NASCAR lawsuit and NASCAR lawsuit pages.
Frequently Asked Questions
What is the Kyle Busch lawsuit about?
The Kyle Busch lawsuit is a civil case in which NASCAR champion Kyle Busch and his wife Samantha sued Pacific Life, agent Rodney A. Smith, and Red River LLC over indexed universal life policies sold as safe retirement plans. They alleged misleading projections and undisclosed costs.
Is the Kyle Busch lawsuit a class action?
No. The Kyle Busch lawsuit was a single civil case brought by two plaintiffs, not a class action or multidistrict litigation. The Buschs sued individually and as trustees of their two irrevocable life insurance trusts.
Did Kyle Busch win his lawsuit against Pacific Life?
Kyle Busch did not win a court judgment against Pacific Life. The case settled on confidential terms, and the parties jointly moved for dismissal with prejudice on March 13, 2026, so no court ruled on the allegations.
How much did Kyle Busch sue Pacific Life for?
Kyle Busch sued Pacific Life over alleged net out-of-pocket losses of $8,582,007, which news coverage described as an $8.5 million lawsuit. The complaint also sought punitive damages and treble damages under North Carolina law.
What is an indexed universal life policy?
An indexed universal life policy is a life insurance contract that combines a death benefit with a cash value account tied to a stock market index. The cash value is supposed to carry built-in protection against market downturns.
Is the Kyle Busch lawsuit connected to the NASCAR antitrust lawsuit?
The Kyle Busch lawsuit is not connected to the NASCAR antitrust lawsuit. Both were heard in the Western District of North Carolina, but the Busch case is a private insurance dispute against Pacific Life and an agent.