Wednesday, January 09, 2008

Louisiana Attorney General Files Suit Against Farmers Insurance

Louisiana Attorney General Charles C. Foti, Jr. announced today that his office has filed suit against Farmers Insurance and other insurance companies. The petition, filed in New Orleans Civil District Court, alleges Farmers Insurance et all participated in an on-going scheme to rig the value of property damage claims paid to their insureds. "They allegedly used damage-estimating software programs to engage in horizontal price-fixing as well. The combination allegedly artificially held down property damage claim payouts with the intended goal of increasing the profits of each company involved."

“This alleged scheme gave insurers an unjust advantage over policy holders, which they used before, during and after one of the greatest disasters this country has ever suffered, by reaping huge profits from the misfortunes of persons whom they pledged to protect from the risk of loss. I believe this unjust advantage resulted in the unjust enrichment of themselves to the detriment of the state, policy holders, and commerce in Louisiana,” stated Attorney General Foti.

Farmers Insurance v. Louisiana (Xactware/Monopoly Lawsuit)


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