State Farm to Pay $250 Million to Settle Class Action Lawsuit

Press Release – September 5, 2018

Plaintiffs and State Farm Mutual Automobile Insurance Company ("State Farm") yesterday announced a compromise agreement to resolve the Hale v. State Farm class action litigation pending in the United States District Court for the Southern District of Illinois.

George Bellas, working with Clifford Law Offices, was one of the attorneys representing the class plaintiffs in this lawsuit.

The Hale litigation arose from the earlier class action lawsuit, Avery v. State Farm, which involved a challenge to the quoting or specification of aftermarket non-Original Equipment Manufacturer vehicle repair parts in the 1980s and 1990s. Avery resulted in a jury verdict in 1999, amounting to a $1 billion judgment against State Farm. That judgment was reversed by the Illinois Supreme Court in August 2005. In Hale, the plaintiffs alleged that State Farm violated federal law by improperly influencing the Illinois Supreme Court's decision to reverse the Avery judgment.

Plaintiffs and State Farm agreed to settle the Hale litigation for $250 million because they believe it is in the best interest of all the parties and to avoid protracted litigation and appeals that could continue for several more years. The settlement provides benefits to the over 4 million current and former State Farm policyholders who were members of the class in Avery.

As a part of the settlement, Plaintiffs agreed to dismiss, upon final approval, their RICO claims and unjust enrichment claims. The Settlement Agreement includes recitals that State Farm denies liability, that it considers the claims to be without merit, that it considers that it is settling under the unjust enrichment claim, and that the Settlement is made simply to bring an end to the entire litigation.

A fairness hearing is scheduled for December 13, 2018. More information about the case is available on the class notice website.

See other reports of the Settlement:

• Crain's Chicago Business - State Farm ducks racketeering trial with $250 million accord
• Chicago Tribune - State Farm pays $250 million, ducks trial over allegations it tried to rig Illinois justice system
• Law360 - $250M State Farm Deal Could Spur More Campaign Cash Suits
• Bloomberg - State Farm Ducks Racketeering Trial With $250 Million Accord
• Reuters - Behind $250 million State Farm settlement, a wild tale of dark money in judicial elections
• Law360 - State Farm To Pay $250M To Settle Rigged-Judge Trial
• Law360 - In State Farm Trial, Veiled Donations May Stoke Juror Anger
• Law360 - State Farm Plotted To Buy Judge, Jury To Hear In RICO Trial
• Law360 - State Farm Loses Experts In Suit Alleging Plot To Elect Judge