State Farm Avoids Racketeering Trial With $250 Million Settlement

Friday, September 7th, 2018 Auto Litigation Risk Management

State Farm agreed to pay $250 million on the brink of a trial to customers who claimed the company tried to rig the Illinois justice system to wipe out a $1 billion jury verdict from 19 years ago. The customers were seeking as much as $8.5 billion in damages in a civil racketeering trial that was set to start Tuesday in federal court in East St. Louis, Illinois. A judge granted preliminary approval to the accord and set a final fairness hearing for December. The biggest U.S. auto insurer was accused in the case of leading an effort to recruit a judge friendly to its cause for the Illinois Supreme Court, secretly funding Judge LLoyd Karmeier’s 2004 election campaign by funneling money through advocacy groups that didn’t disclose donors.

---

https://www.bloomberg.com/news/articles/2018-09-04/state-farm-settles-racketeering-case-for-250-million

---