State Farm reaches $250M deal in conspiracy lawsuit funneling money to former Ill. SC Chief Justice
EAST ST. LOUIS, Ill. (AP) — Insurance giant State Farm on Tuesday {August 28} reached a $250 million preliminary settlement in a federal class-action lawsuit claiming the company funneled money to the campaign of an Illinois Supreme Court candidate.
The lawsuit filed in U.S. District Court in East St. Louis alleged Bloomington-based State Farm secretly funneled money to the campaign of Supreme Court Chief Justice Lloyd A. Karmeier while he was a candidate for the high court in 2004.
In the 2005 case of Avery v. State Farm, Karmeier cast the deciding vote to reverse a $1.06 billion judgment in 1999 against State Farm for its use of aftermarket car parts in repairs. The court ruled the nationwide plaintiff class was improperly certified by a Williamson County trial judge. It also contended using aftermarket parts was not a breach of State Farm policyholders' contracts.
The class-action lawsuit sought nearly $10 billion from State Farm in a trial that was scheduled to begin Tuesday. The plaintiffs alleged State Farm covertly supported Karmeier's campaign in order to secure his win and reversal of the Avery lawsuit decision.
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