Allstate Insurance has settled a Madison County class action suit over its treatment of drivers who formerly bought high risk insurance from "nonstandard" insurers.
Priscilla Spencer and seven other plaintiffs sued Allstate in 2002, charging that it improperly added charges to their premiums and denied them discounts.
In the settlement, Allstate disclaims any wrongdoing. Attorney Roger Heidenreich of Sonnenschein Nath and Rosenthal, St. Louis, signed for Allstate.
Attorneys Stephen Tillery of St. Louis and Jay Angoff of Jefferson City, Mo., signed for the plaintiffs.
The settlement creates three classes.
Anyone who has paid a tier adjustment surcharge since 1997 will receive 75 cents for each dollar of surcharge.
Anyone who should have received a discount since 1991 will receive 50 cents for each dollar of discount.
Anyone who has paid a prior nonstandard surcharge since 1991 will receive 17.5 cents for each dollar of surcharge.
Tillery's legal team will receive 29 percent of the settlement
award. From that amount Tillery will pay each named plaintiff $5,000.
Circuit Judge Nicholas Byron has set a May 24 hearing on a joint motion for approval.