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State Farm Pays Quarter Billion to Stop Lawsuit Accusing it of Rigging Legal System

Last week, State Farm Insurance Company paid $250 million dollars to settle a lawsuit accusing it of civil racketeering. Most people know racketeering in a criminal context. One thinks of mobsters and mafia members involved in organized crime when they hear the word. Criminal racketeering charges must be prosecuted by the government in a criminal case. However, there is also civil racketeering which allows private individuals to go after businesses who have been engaged in fraudulent conduct.

This is what State Farm was accused of in a federal lawsuit pending in Illinois. Specifically, an attorney, suing State Farm on behalf of customers, claimed that State Farm tried to rig the Illinois Court system to wipe out a 1 Billion dollar jury verdict entered against it. The lawsuit accused State Farm of improperly funding a state court judge’s campaign to secure a spot on the Illinois Supreme Court. The lawsuit alleged that State Farm knew the judge was friendly to its cause, and hoped that the judge would enter decisions in State Farm’s favor once seated in the highest state court.

The lawsuit further alleged that State Farm spent over $3.5 Million to help the judge’s campaign and funneled money through advocacy groups to conceal the donations it made. State Farm denied the allegations, but agreed to settle the lawsuit shortly after the jury was selected.

Clearly, paying 250 million dollars indicates that State Farm was very concerned about the result and what would be revealed at trial. Corporations and companies do not hand out sums of money like that unless there is genuine exposure. What does this all mean?

State Farm is the biggest auto insurance company in the country. If State Farm is willing to break the law and rig the court system, how do you think State Farm is handling routine auto insurance claims? Undoubtedly, with the exact same unethical and shady tactics. In other words, State Farm is doing everything in its power to save money and increase profits. This includes low-balling injured victims and wrongfully denying valid injury claims.

The attorneys at Scottsdale Injury Lawyers see this on a daily basis. Insurance companies routinely offer unreasonable amounts and try to deny valid claims. It is almost as if the insurance companies will do everything in their power to stop from paying a fair amount. This is why you need to hire a skilled personal injury attorney if you are making a claim against an insurance company. You simply will not be treated fairly and need someone to fight for you.

Our Scottsdale based attorneys know all the games the insurance companies play. We are prepared for their frivolous arguments and dishonest tactics. Most importantly, we are up to do battle with them and hold them to task. If you or a loved one were injured due to the fault of another and are up against an insurance company, contact us today for assistance.

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