State Farm settles class action for $250M
State Farm has settled a class action for $250 million claiming it created a RICO enterprise to funnel campaign money to an Illinois Supreme Court justice who later voted to overturn a $1 billion verdict against the insurance company, according to the ABA Journal. The lawsuit claimed that State Farm used non-profit organizations to secretly fund the election of Illinois Supreme Court Justice Lloyd Karmeier. A trial was scheduled for last week, but a preliminary settlement was approved by a federal judge on September 5, with a hearing on final approval set for December 13. According to an amended complaint, State Farm orchestrated as much as $4 million of $4.8 million in campaign contributions to Karmeier through an organization called the Illinois Civil Justice League, which was created by a State Farm lawyer, who also hired the ICJL’s president. The New York Times also has details on the settlement. A news release from State Farm denied any liability and said the plaintiff’s claims were without merit.
Written by Andrew Findley