Allstate Settles Class Action Discrimination Lawsuit for $4.5 Million

EEOC v. Allstate Insurance (Eastern District of Missouri, September 14, 2009)   On September 14, 2009, Allstate settled an age discrimination action agreeing to pay 90 former employees approximately $4.5 Million. The litigation arose out of Allstate’s efforts to convert its workforce from employees to independent contractors.   In order to facilitate the transition, Allstate enacted a hiring moratorium for one year, beginning in 2000. It was alleged that the moratorium had a disparate impact on individuals over 40 years
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Deception and Estoppel Preclude Insurer’s Claim for Deductible Reimbursement After Class Action Settlement

American National Fire Insurance Company v. York County (1st Circuit (Me) August 5, 2009) The insured, York County, was sued in a class action for its strip search policy. ANFIC covered a period during which these claims arose. The ANFIC policy had a $5,000 per occurence deductible, which ANFIC maintained applied to each claim. ANFIC previously reserved its rights on this issue. ANFIC after protracted negotiations agreed to participate in a class settlement where it contributed $750,000. The record indicates that under
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Class Action Lawsuit Filed Against Insurance Brokers for Allegedly Assisting the Robert Allen Standford’s Ponzi Scheme

Samuel Troice et al v. Willis Group Holdings, LTD et al (Northern District of Texas, July 2, 2009)   Just days after it was announced that fallen Stanford Financial Group’s disgraced CFO, James Davis, would plead guilty to his role in Stanford’s alleged $7 billion ponzi scheme, a group of Mexican investors filed a class against complaint against Stanford’s insurance brokers, including Willis Group Holdings, Ltd., alleging the brokers effectively became partners in the ponzi scheme by issuing letters certifying that
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Fourth Circuit Dismisses Title Insurance Overcharge Class Action

Arthur v. Ticor Title Insurance Co. of Florida (4th Cir. [MD] June 18, 2009) A class action was brought against Ticor Title Insurance Co. under the federal Real Estate Settlement Procedures Act for charging excessive rates for title insurance policies and sharing the money with agents during home refinancings. The action sought treble damages for the overcharges in addition to compensatory and punitive damages for violations of the federal law, as well as negligent misrepresentation and civil conspiracy under Maryland
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