Allstate Faces Contempt Charges for Handling of Auto Cases

Michael Phelan
Attorney
(866) 735-1102 Ext 375
Posted by Michael PhelanJanuary 17, 2008 3:33 PM

I blogged earlier this year about Allstate's "Delay, Deny, and Defend" policy designed to screw injured victims making claims under Allstate policies. CNN's Anderson Cooper also did an expose on this practice. The courts are now catching on. Allstate is facing contempt charges in Missouri with a $25,000.00 per day fine because it refuses to produce a report from consultant McKinsey & Co. which advises Allstate how to delay legitimate automobile accident claims to increase profits. A Miami court just ordered Allstate to cease selling automobile insurance policies in Florida, in part, because it will not produce the McKinsey report. The report allegedly describes in detail a scheme devised by Allstate and McKinsey to unscrupulously delay, deny, and defend legitimate claims that should be settled.

For more information on this subject, please refer to the section on Car and Motorcycle Accidents.

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