Insurance News

Allstate Settles Class Action

Posted on: August 18, 2009

NORTHBROOK, Ill., Aug. 16 /PRNewswire-FirstCall/ — Allstate announced today that it entered into a settlement of a nationwide class action lawsuit, Strasen v. Allstate, which has been pending in the Circuit Court of Madison County, Illinois for almost 10 years. This settlement includes all Allstate and Encompass entities. The Court preliminarily approved the settlement on July 16, 2009.

Plaintiffs alleged that Allstate utilized a computerized medical bill review system provided by ADP which failed to correctly calculate medical expenses from automobile and homeowner’s claims. Allstate continues to believe its medical bill review practices were and are appropriate and fully comply with the law, but agreed to resolve the case on terms Allstate considered fair and appropriate to avoid the burden and expense of continued litigation.

Allstate believes its bill review procedures help policyholders maximize their benefits by reimbursing providers the appropriate amount for services. Allstate’s policy is to try to resolve billing disputes with providers while protecting its policyholders’ interests.

Individuals with questions about this case should visit or contact plaintiffs counsel Bradley M. Lakin, LakinChapman LLC, at (618) 254-1127.

The Allstate Corporation (NYSE:ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate ” slogan, Allstate is reinventing protection and retirement to help more than 17 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via and 1-800 Allstate .

Source: The Allstate Corporation

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