In a lawsuit from Kansas, Allstate had been sued for handling a claim in "bad faith". Read Article Here. As part of the suit, the Plaintiff sought documents from Allstate which included documents created by the consulting firm McKinsey & Co. According to the article, the documents sought were thought to have advised Allstate to avoid paying claims to its insureds to reap larger profits. The Judge in the case was so frustrated by the tactics of Allstate that he precluded the company from putting on a defense in the case and fined the company $25,000 for every day that it did not provide the documents that were sought. Eventually, Allstate produced the documents, but not before being racking up over $7 million in contempt fees. Once Allstate produced the documents, the Judge set aside the $7 million contempt citation. Allstate blamed the failure to produce the documents on its attorney. The parties reached a confidential settlement and the produced documents will remained sealed for now. Hopefully, the documents will eventually see the light of day so that Allstate's treatment of its insureds can be viewed by all.
Visit Our Website: JoelBieber.com
