State Farm Will Have to Face Campaign Funding Racketeering Claims

State Farm Will Have to Face Campaign Funding Racketeering Claims

In a victory for 4.7 million policyholders, a federal judge in Illinois has ruled that State Farm must face a class action lawsuit alleging the company entered into a secret scheme to seat a sympathetic judge to overturn a $1.05 billion judgment against the company for approving the use of lower-quality non-original equipment manufacturer (non-OEM) automotive parts for repairs to policyholder vehicles. The judge rejected State Farm’s argument that the suit over racketeering claims are an improper effort to relitigate claims already reviewed in the related state court case. [Read more…]

State Farm Racketeering Case Now Set As Class Action Suit

Judge gavel, scales of justice and law books in court

Lawsuit alleges State Farm campaigned illegally to elect a judge to vote against previous $1.05 billion judgment against the company

As reported by Law360 (subscription) and other news outlets, U.S. District Court Judge David Herndon has granted class action status to a lawsuit brought by Lieff Cabraser and co-counsel on behalf of 4.7 million State Farm policyholders that alleges State Farm Mutual Automobile Insurance Co. carried out a racketeering enterprise aimed at defrauding the policyholders of a $1.05 billion judgment by getting a new judge elected to the Illinois Supreme court who would rule in State Farm’s favor to scuttle the judgment, previously approved by the Illinois appellate court. [Read more…]