USAA Reaches Settlement in Lawsuit Over ACV Payments

A settlement has been reached in a Mississippi class action suit accusing USAA of failing to pay the full actual cash value (ACV) of totaled vehicles, just days after a judge rejected the carrier’s motion to dismiss the suit.

U.S. District Judge Sharion Aycock dismissed the case, Thompson v. USAA, on Aug. 12, after the court was advised that the action ‘was settled or is in the process of being settled.’

The judge ordered that the lawsuit be dismissed ‘without prejudice’ with the court retaining ‘complete jurisdiction to vacate this order and reopen the action upon cause shown that the settlement has not been completed and further litigation is necessary.’

The terms of the settlement are confidential, an attorney for the plaintiffs told Repairer Driven News.

Aycock had denied USAA’s motion for summary judgment on July 27 and indicated that questions raised by the carrier should be settled in court. Although she found that some of the policy language on which the plaintiffs’ claims were based was ambiguous, she noted that case law favors the plaintiffs in such cases.