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Allstate Settles 10-Year Class Action Lawsuit

Allstate has 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.

The settlement includes all Allstate and Encompass entities. The court entered a final order approving the settlement on November 25, 2009. The plaintiffs had alleged that Allstate utilized a computerized medical bill review system provided by ADP which failed to calculate medical expenses from automobile and homeowner’s claims.

Allstate said that it continues to believe its medical bill review practices were and are appropriate and 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.

In addition, Allstate said it believes that its bill review procedures help policyholders maximize their benefits by reimbursing providers the appropriate amount for services.

Allstate is a publicly held personal lines insurer. It provides protection and retirement to more than 17 million households. Its insurance products and services are accessed through its agencies, independent agencies and Allstate financial representatives in the US and Canada.