State Farm Accused of Influence Pedaling

On May 25, the Huntington News reported that State Farm Insurance Company had attempted to influence the Illinois Supreme Court.  State Farm spent $4 million to get a judge elected so it could evade paying $1.05 billion to 4.7 million policyholders.  State Farm had authorized the repair of vehicles using non-factory authorized and non-original equipment manufacturer parts which resulted in a class action lawsuit.  However, it an attempt to evade paying the judgment, State Farm formed an elaborate network of contributors and funneled the $4 million to a judge’s campaign which was in violation of RICO statutes.  State Farm’s trial is scheduled for September 18th, later this year.  The full text of the Huntington News article can be found at http://www.huntingtonnews.net/157148.  The article also points out that State Farm failed to compensate policyholders in 48 states (except Arkansas and Tennessee) for “breach of contract” in using substandard parts.  This means that policyholders all over the country are affected, not just residents of Illinois.  Policyholders are encouraged to visit http://www.halevstatefarmclassaction.com/home/documents and review the documents.  Because of this situation, policyholders are supposed to receive a notice by postcard of the trial.  This is the policyholder’s notice of the possibility to recover damages if their vehicle was repaired with non-approved parts.  A copy of the postcard is part of the documentation contained in the Hale v State Farm website.

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Federal Jury Renders Verdict Against State Farm

ABC News is reporting that a Federal Jury has found that State Farm Fire and Casualty Company has committed fraud while falsifying reports of damage to a home damaged during Hurricane Katrina. State Farm auditors Cori and Kerri Rigsby testified that they witnessed widespread fraud in State Farm offices in Biloxi and Gulfport Mississippi. Specifically, using a falsified report, State Farm avoided paying $250,000 for wind damage to a residence and instead, was able to shift the resposibility to the National Flood Insurance Program. ABC News has also reported that the federal govenrment will seek reimbursement and that State Farm will appeal the ruling. Furthermore, the ruling opens the possibility for “review of thousands of similar cases”. The entire article can be found on the ABC News website located at http://www.abcnews.com.

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