Allstate to pay $90mn in class action shareholder settlement
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Allstate to pay $90mn in class action shareholder settlement

Allstate logo chicago stock numbers.jpg

Allstate has agreed to pay shareholders $90mn to settle a years-long class action lawsuit alleging that the carrier defrauded shareholders by falsely reporting the source and scope of “skyrocketing” auto claims to artificially boost the stock price.

The preliminary settlement, filed Monday in a Chicago federal court, is awaiting a judge’s approval.

The Illinois-based insurer denied wrongdoing but settled to avoid the “burden, expense and uncertainty” of further litigation, which is currently well approaching its eighth year.

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