Plaintiffs allege Farmers “Smart Plan” illegally restricts discounted rates to new customers only
Lieff Cabraser represents plaintiff customers of Farmers Group Insurance over claims that Farmers illegally discriminates against their existing automobile insurance customers by keeping them from getting lower rates only made available to new customers. The federal complaint alleges that Farmers is charging more to their existing customers than they are charging their new customers for the same or virtually the same insurance coverage, and keeping their most loyal, existing customers in the dark about the lower, otherwise available rates.
In December 2019, the parties announced that Judge Lee Yeakel of the Western District of Texas had given early approval to a settlement of the class action valued at $52 million that will provide compensation to the plaintiffs. The settlement grew from a series of mediation sessions with Deborah Hankinson, a former Texas Supreme Court justice. Formal approval of the settlement is expected by May of 2020.