Outcome: $25 Million Settlement
Andrea Stevenson v. Allstate Insurance Co et al, No. 4:15-cv-04788-YGR in the U.S. District Court for the Northern District of California
TZ and co-counsel secured a win for California insurance customers with the approval of a $25 million class action settlement involving Allstate Insurance Company. The class action lawsuit, encompassing over 1.2 million policyholders, alleged that Allstate violated multiple California laws by improperly using price optimization to inflate auto insurance premiums. After nearly nine years of rigorous litigation and mediation, the Court approved the settlement, bringing relief to affected consumers.
As part of this settlement, Allstate has agreed to file a new auto insurance plan with the California Department of Insurance, which eliminates the use of price optimization. The settlement ensures both monetary compensation and critical changes in Allstate’s practices, marking a substantial win for consumer rights.