Allegation that You’re in Bad Hands with Allstate Leads to $90 Million Settlement

Insurer Failed to Disclose Its Sales to High Risk Drivers, Plaintiffs Claim

Case Name: Allstate

Settlement Fund: $90 million

Claim Filing Deadline: February 8, 2024

Class Period: October 29, 2014 -- August 3, 2015

Court and Docket No.: Northern District of Illinois, 16-cv-10510


Chicago Clearing Corporation (CCC) is preparing claims for the $90 million Allstate settlement, as well as for scores of other upcoming securities and antitrust settlements. Aside from the sizeable settlement fund, of note in this litigation is the nearly decade-old class period. If retrieving trade antique data sounds like a pain, (were computers even a thing back then?), CCC has the solution.

What this case is about 

On August 3, 2015, Allstate announced a 57% decline in operating income due to an increase in auto insurance claims, and an increased frequency of them. Shares of its common stock (ALL) fell 10% the following day.

While Allstate blamed an increase in miles driven, weather, and other uncontrollable factors, investors argued in a securities class action that the company had failed to disclose it had been marketing to higher risk drivers. As a result of this omission, plaintiffs alleged in their class action complaint, Allstate had traded at artificially inflated prices. Plaintiffs also alleged that corporate insiders were able to sell some of their own shares before the truth was revealed.

Despite the settlement fund, Allstate asserts that investors were in good hands. “Defendants have denied and continue to deny each and every one of the claims,” the parties note in the stipulation of settlement. Plaintiffs likewise stand by their “bad hands” arguments, and affirm that their arguments “have merit and that the evidence developed to date supports the claims asserted.” However, they opted for a settlement due to “the uncertain outcome and the risk of any litigation, both on merits and damage issues, especially in complex actions such as the Action.”

Unfortunately, the operative complaint does not play on the "good hands" slogan, so we have picked up the slack here.

How CCC Can Help

The data experts at CCC can retrieve transactions and positions no matter how old and no matter what platform. We have normalized billions of rows of data for our clients, and are prepared to file tens of thousands of claims in the Allstate settlement. Call today and we can help with this securities litigation and with any other settlement that pertains to you or your clients. Our experts are at 312-204-6970.

More News from the Class Action World

Case Name: Alphabet

Read More

Read More

Read More

Case Name: Read More

Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, MDL 1720


Read More

Read More

Case Name: ... Read More

Read More

Case Name 1: The Kraft Heinz Company

Read More