On June 28, 2023, Labaton Sucharow secured a $90 million settlement (pending court approval) on behalf of Allstate investors in a securities class action.

The suit alleges that Allstate’s stock price was artificially inflated by materially false and misleading misrepresentations and omissions made by the defendants in violation of federal securities laws and regulations. Specifically, it alleges that, in 2014 and 2015, the defendants made misstatements and improperly failed to disclose information regarding a large increase in the number of claims being filed by Allstate’s auto insurance customers.

In 2020, the case survived an appeal to the Seventh Circuit Court of Appeals, which resulted in important legal precedent regarding the criteria for class certification in securities class actions.

In 2022, the case also survived the defendants’ motion for summary judgment, when a federal judge found there were jury questions regarding Allstate executives’ motives for not disclosing the spike in auto claims and their later decision to blame the higher rate of claims on macroeconomic factors and bad weather.

The settlement states that before the parties agreed to settle the action, they had completed extensive fact and expert discovery, which included taking or defending 35 fact and expert depositions and class counsel's review of nearly 300,000 pages of documents produced by defendants and third parties.

The case is In re Allstate Corp. Sec. Litig., N.D. Ill., No. 1:16-cv-10510.

Read the full article here: "Allstate Settles Auto Insurance Claim Spike Suit for $90 Million"