Class-action lawsuit against State Farm settled for $250 million

Posted on September 4, 2018

By Greg Halbleib

CHICAGO – A $250 million settlement has been announced in a class-action lawsuit against State Farm in connection with non-factory parts used for vehicle repairs.

The case stems from a lawsuit filed in 1999 that challenged State Farm’s authorization of the parts. The Illinois Supreme Court overturned a $1 billion award in the case in 2005.

A related case allowed State Farm policyholders to file a class-action lawsuit in 2015, alleging that State Farm made indirect contributions to the campaign of Lloyd Karmeier for Illinois Supreme Court. He was elected to the court and voted in favor of overturning the earlier award. Karmeier is now the chief justice of the Illinois Supreme Court.

A joint release by State Farm and the Clifford Law Firm of Chicago, which represents the policyholders in the case, said the $250 million class-action settlement calls for the policyholders to drop further legal action, and that State Farm denies any wrongdoing and is settling the case to simply end the litigation.

Greg Halbleib can be reached at [email protected].

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