State Farm $250M Class Action Racketeering Settlement Approved

State Farm’s agreement to pay out $250 million to 4.7 million insured class members to settle civil racketeering allegations has been approved by an Illinois federal court.

State Farm Mutual Automobile Insurance Company and the other defendants “denied—and continue to deny—any wrong doing and opposed all of Plaintiffs’ claims,” the U.S. District Court for the Southern District of Illinois said in its Dec. 13 order granting final approval to the settlement.

The roots of the case stretch back to 1999, when State Farm was ordered to pay $1.06 billion over state consumer protection claims brought by the same class of ...