What started as a minor $25,000 claim for neck and back injuries sustained in an auto accident has escalated into a potential $800 million class action lawsuit against Allstate insurance company.
The lawsuit alleges that Allstate’s claim practices are designed to bully car accident victims — particularly the poor, the elderly and the disabled — into accepting unfair compensation for their pain and suffering.
Allstate’s claim handling procedures were designed in the early 1990s by McKinsey & Co., a consulting company with close ties to Enron. The lawsuit alleges that Allstate forces claimants to accept low-ball offers or face years of stressful, costly litigation for routine claims and accidents.
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