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Settlement Agreement in Pittman v. Allstate, et al. Class Action

Allstate has entered into a settlement agreement in an Ohio class action entitled Pittman v. Allstate Insurance Company, et al. pending in Cleveland, Ohio. The settlement received preliminary approval from the court on March 26, 2012, and includes Allstate Insurance Company, and Allstate Indemnity Company. The plaintiffs alleged that Allstate did not properly adjust structural losses in Ohio during the period January 1995-June 2003, by using the Accupro cost estimating system and/or failing to pay appropriate contractor overhead and profit on claims.


The court has made no rulings on the merits of plaintiffs' claims, and Allstate has denied that it did not properly adjust claims during the class period. Although confident in our position, Allstate was presented with an opportunity to settle the case on terms we deemed fair and appropriate. By achieving this settlement, Allstate was able to avoid the burden and considerable expense of continuing litigation. This is good for Allstate and its customers.

Under the settlement, Allstate policyholders with property in Ohio who were paid on Homeowners structural loss claims during the period January 1, 1995-June 30, 2003 may be eligible for an additional payment on their claim. Allstate has also agreed to enhance certain claims practices.

As part of the settlement, notices will be mailed to approximately 120,000 potential class members on April 25, 2012; there will be no media publication of this notice.

Posted 9:11 AM

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