Judge Grants Final Approval to $250 Million State Farm RICO Lawsuit Settlement

Final Settlement Approved in State Farm RICO Lawsuit

As reported by Law360, U.S. District Judge David Herndon has granted final approval to a $250 million settlement in the class action lawsuit brought by State Farm policyholders accusing the auto insurer of using campaign donations to buy the vote of an Illinois Supreme Court Justice. [Read more…]

State Farm Settles Rigged-Judge Auto Parts RICO Fraud Trial for $250 Million

State Farm Settles Rigged-Judge Auto Parts RICO Fraud Trial

Hale, et al. v. State Farm, No. 3:12-cv-00660 (S.D. Illinois) began over 20 years ago with a class action suit by State Farm insureds alleging State Farm wrongly replaced their post-accident vehicle parts with non-OEM in violation of the terms of their insurance policies. In 1999, an Illinois state court jury awarded plaintiffs $456 million for breach of contract by the company, and the trial judge added $730 million in punitive damages. An appellate court reduced the verdict to $1.056 billion, at that time one of the largest class-action verdicts in U.S. history. [Read more…]