In what will likely be the first of many consumer protection lawsuits involving the Coronavirus (COVID-19), a group of California consumers filed a federal class action complaint alleging Vi-Jon, Inc. falsely advertised, marketed, and sold its Germ-X brand hand sanitizers as being able to prevent viruses, including COVID-19. As the COVID-19 pandemic grows in size and scope, consumers are gravitating to products to provide some degree of security and comfort. In light of the CDC’s recommendations to use hand sanitizer to prevent the spread of …Continue Reading
Category: Class Actions
New Jersey Appellate Division Dismisses Broker’s Attempt to Hold Defense Counsel Jointly Liable for Failure to Report D&O Claim
The Appellate Division recently rejected an attempt by an insurance broker to assert contribution and common law indemnity claims against two law firms that represented a mutual client as part of a professional malpractice case the client filed against the broker. The holding confirms the narrow circumstances in which such claims can be successful under New Jersey law. The case is South Brunswick Furniture, Inc., et al. v. Acrisure LLC d/b/a Beckerman & Co. No.:A-2981-17T1, 2020 WL 1043114 (N.J. App. Div. March 4, 2020).
In …Continue Reading
Third Circuit Revives Consumer Fraud Act Class Action against Insurer Based on Adjuster’s Alleged Deceptive Conduct
The Third Circuit’s recent decision in Alpizar-Fallas v. Favero, __ F.3d __, 2018 WL 5987140 (3d Cir. Nov. 15, 2018), is a stark reminder that the process of adjusting an insurance claim is not exempt from the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. (CFA). In Favero, Progressive Garden State Insurance Company (Progressive) insured, under two separate policies, the drivers of two vehicles involved in an accident. After the accident, a Progressive adjuster allegedly visited Ana Lidia Alpizar-Fallas (Plaintiff), one of …Continue Reading
Allstate Settles Class Action Discrimination Lawsuit for $4.5 Million
EEOC v. Allstate Insurance
(Eastern District of Missouri, September 14, 2009)
On September 14, 2009, Allstate settled an age discrimination action agreeing to pay 90 former employees approximately $4.5 Million. The litigation arose out of Allstate’s efforts to convert its workforce from employees to independent contractors.
In order to facilitate the transition, Allstate enacted a hiring moratorium for one year, beginning in 2000. It was alleged that the moratorium had a disparate impact on individuals over 40 years old. In addition to the …Continue Reading
Deception and Estoppel Preclude Insurer’s Claim for Deductible Reimbursement After Class Action Settlement
American National Fire Insurance Company v. York County (1st Circuit (Me) August 5, 2009)
The insured, York County, was sued in a class action for its strip search policy. ANFIC covered a period during which these claims arose. The ANFIC policy had a $5,000 per occurence deductible, which ANFIC maintained applied to each claim. ANFIC previously reserved its rights on this issue. ANFIC after protracted negotiations agreed to participate in a class settlement where it contributed $750,000. The record indicates that under any calculation (with the deductible …Continue Reading
Class Action Lawsuit Filed Against Insurance Brokers for Allegedly Assisting the Robert Allen Standford’s Ponzi Scheme
Samuel Troice et al v. Willis Group Holdings, LTD et al
(Northern District of Texas, July 2, 2009)
Just days after it was announced that fallen Stanford Financial Group’s disgraced CFO, James Davis, would plead guilty to his role in Stanford’s alleged $7 billion ponzi scheme, a group of Mexican investors filed a class against complaint against Stanford’s insurance brokers, including Willis Group Holdings, Ltd., alleging the brokers effectively became partners in the ponzi scheme by issuing letters certifying that Stanford was “safe and sound,” …Continue Reading
Fourth Circuit Dismisses Title Insurance Overcharge Class Action
Arthur v. Ticor Title Insurance Co. of Florida
(4th Cir. [MD] June 18, 2009)
A class action was brought against Ticor Title Insurance Co. under the federal Real Estate Settlement Procedures Act for charging excessive rates for title insurance policies and sharing the money with agents during home refinancings. The action sought treble damages for the overcharges in addition to compensatory and punitive damages for violations of the federal law, as well as negligent misrepresentation and civil conspiracy under Maryland law.
Affirming the dismissal …Continue Reading