SquareTrade Faces Claims it Shorted Product Protection Buyers

Allstate Corp. unit SquareTrade Inc. must keep facing a Maryland man’s proposed class claims that it fails to comply with the full terms of product protection plans, but a California federal court dismissed two other plaintiffs’ claims for now.

Michael Shuman, Tommy Gonzales, and Kathleen Abbott alleged that SquareTrade systematically pays less than the purchase price of the covered item when claims are filed.

There is a genuine fact dispute as to whether SquareTrade breached its contractual obligation to Shuman by paying less than the full purchase price of his luggage, the U.S. District Court for the Northern District of ...