News

Court to Notify State Farm Policyholders about Lawsuit Involving Non-OEM Parts

Order Reprints

May 17, 2018—The Illinois Supreme Court will notify consumers who were insured by State Farm and had non-OEM crash parts installed on or specified for their vehicle between July 28, 1987 and Feb. 24, 1998, that a class action lawsuit may affect their rights.

The lawsuit claims that State Farm, Ed Murnane and William Shepherd (the defendants) violated the RICO statute in an attempt to overturn a $1.05 billion judgement in favor of approximately 4.7 million State Farm policyholders. The attempt would allow State Farm to avoid paying the amount of the judgement rendered in plaintiffs' favor in the trial court.

The defendants deny all allegations of wrongdoing, including violating RICO.

A trial is scheduled to begin on September 4,2018.

The Court decided that the class includes individuals in the U.S. (except Arkansas and Tennessee) who made a claim for vehicle repairs pursuant to their policy and had non-factory authorized parts installed , and were insured by a vehicle casualty insurance policy issued by State Farm, would receive monetary compensation in relation to the cost of the parts.

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