Author: Sackstein Sackstein & Lee, LLP
Our Family Serving Yours for Over 60 Years
The recent $137 million settlement signed November 9, 2011 for a class action lawsuit against Farmers Insurance is not the first time the company faced a class action for underpaying personal injury protection (PIP) claims.
In an earlier class action suit, Strawn v. Farmers Insurance Company of Oregon, the jury rendered a verdict that Farmers owed the class approximately $8 million in punitive damages and $900,000 in compensatory damages.
The more recent $137 million settlement was for a case filed in Oklahoma referred to as Farmers Med Pay Litigation. It covered a time period from January 2001 to early February 2009, and once again the class of plaintiffs argued that Farmers Insurance failed to pay reasonable expenses for necessary medical services.
Settlement calculation
Perhaps Farmers Insurance feared a similar unfavorable judgment should this case go to trial. Whatever the reason, settlement terms were for class members to receive 60% of the difference between the amount of bills submitted for Farmers Med Pay or PIP claims and the amount paid by Farmers based upon a recommended reduction for reasonable expenses. The calculation came to $137,470,259.
The insurance industry is known for underpaying and delaying claims. If involved in an accident and seriously injured, seek legal advice from a New York personal injury lawyer because this is the only way you are likely to receive the compensation you deserve.










