GEICO Loses Bid to Reverse Class Certification Over Totaled Cars

The Government Employees Insurance Co. lost its bid to reverse class certification in a case alleging the company failed to adequately compensate insured customers for their totaled vehicles.

Five Texas motorists brought their complaint against GEICO, GEICO Advantage Insurance Co., GEICO Indemnity Co., GEICO Choice Insurance Co., and GEICO County Mutual Insurance Co. alleging breach of contract and violation of the prompt payment statute in the state’s insurance code.

The US Court of Appeals for the Fifth Circuit affirmed the lower court’s decision to grant the motorists class certification. The lower court modified the proposed class to include only Texans ...