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State Farm Class Action includes millions of policyholders

Posted on Sep 14, 2016

The Chicago Tribune reports that insurance giant State Farm now has to face a class action suit where the class can potentially be 4 million of its policyholders. That means potentially 4 million State Farm policyholders stand to benefit from a judgement in this case.

The suit, now a class action as of this week, was filed in 2012 and alleges that State Farm conducted a racketeering enterprise that enabled them to evade paying a $1 billion judgment dating from 1997.

What's this $1 billion judgement that State Farm doesn't want to pay? It's for claims from their policyholders regarding damages to their cars between 1987 and 1998. 

State Farm repaired cars with nonoriginal equipment manufacturer parts leading to the $1 billion payout ordered by the court. 

Too often insurance companies are not on the side of the people they insure. We see here with State Farm that often times in an effort to get even more profits, companies can and still will take the easy way out instead of diong the right thing. When dealing with the insurance company after a serious accident, you need an experienced lawyer on your side, not someone who isn't on your side from the very beginning. Learn what to do after a car accident here

At Donahoe Kearney, we know how to deal with insurance companies, and have been dealing with them for a long time. We know the common tricks they use, and how to handle an adjuster that just won't work with you to get your case to resolution. Hear this true story about an insurance company that could not be trusted, and got caught giving the wrong information to someone injured in a car accident in our area.  

We're glad this federal court decided that certifying the class to State Farm's policyholders was the right thing to do. Still, insurance companies are still out to make sure you get the least possible for your accident. Read The Ultimate Guide to Accident Cases in the DC Metro Area and it should clear up a lot of questions about your rights and how to deal with insurance companies after a accident in our area.

And give us a call at 202-393-3320 if you have additional questions, or want help after an accident that was not your fault.