State Farm class action settlement overview:
- Who: A federal judge has granted preliminary approval to a class action settlement between State Farm and a class of policyholders.
- Why: State Farm agreed to the settlement to resolve claims it underpaid policyholders for total loss vehicle claims.
- Where: The State Farm class action settlement was filed in Arkansas federal court.
A federal judge has granted preliminary approval to a class action settlement resolving claims State Farm underpaid policyholders for total loss vehicle claims.
Plaintiff Rose Chadwick filed the class action lawsuit against State Farm in November 2021, alleging the insurance company underpaid policyholders who filed claims for total loss vehicles.
The plaintiff claimed State Farm systematically underpaid insureds for total loss claims, in breach of its insurance contracts and the implied covenant of good faith and fair dealing. Chadwick alleges the company did so by basing compensation on valuation reports that applied “typical negotiation adjustments” (TNA), which, she contends, are improper…