GEICO to face class motion lawsuit

The choose stated a category motion could be higher than particular person lawsuits, with the damages mannequin the plaintiffs provided presenting an “applicable proportion refund” over a size of time to handle manageability.

The case stemmed from policyholders objecting to GEICO’s announcement that it will provide $2.5 billion of auto insurance coverage credit – together with a 15% low cost on renewals – beginning April 2020 to mirror how individuals have been driving and entering into automotive accidents much less usually for the reason that pandemic.

The complaining policyholders stated GEICO reaped a windfall because the receivable credit score fell ‘nicely brief’ of the ‘substantial and full aid’ the insurer had claimed the credit offered, contemplating the lessened dangers on the street, Reuters first reported.

The category motion – Day v. Geico Casualty Co et al, U.S. District Court docket, Northern District of California, No. 21-02103 – would cowl California residents who purchased automotive, motorbike, or RV insurance coverage from GEICO between March 1, 2022, and now.

GEICO can be defending towards an identical federal lawsuit in Chicago, the place it beforehand satisfied an appeals courtroom to uphold the choose’s dismissal of the case.

Different insurers who provided pandemic-related refunds to policyholders embody State Farm and Allstate.

Supply hyperlink

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button