State Farm Pays $250 Million To Settle Class Action Alleging It Rigged a Judicial Election

State Farm has agreed to pay $250 million to settle a class action alleging it secretly worked to help elect an Illinois high court justice in order to overturn a billion-dollar judgment against State Farm. The class members are millions of State Farm policy holders.

The complaint alleged that State Farm collaborated with advocacy groups to handpick Lloyd Karmeier to run for an Illinois Supreme Court seat because of his sympathy to tort reform. State Farm allegedly funneled money through interest groups like the U.S. Chamber of Commerce to assist Mr. Karmeier in his successful 2004 campaign.

The complaint alleged that after Justice Karmeier was seated, he was involved in overturning a $1.06 billion award in favor of millions of State Farm customers who said the insurer let them down by having body shops fix their crashed cars with lower-quality aftermarket parts instead of automaker-branded parts.The award had been affirmed by a state appellate court in 2001, and was overturned by the state Supreme Court in 2005.

The case is Hale et al. v. State Farm Mutual Automobile Insurance Co. et al., case number 3:12-cv-00660, in the U.S. District Court for the Southern District of Illinois.

This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.

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Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.


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The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.