Class Action Law Suits And American Family Insurance
A class action suit is where a large number of people form a group, and together file a law suit against a single organization.
In a class action suit, most of the people will have similar grievances. This type of lawsuit is common in the United States, and there are several popular ones.For example, if a large number of people including seniors and children fell sick after eating certain brand of fast food, then this would lead to a class action law suit. The attorneys or legal organizations that will take up this case would advertise widely inviting people, who suffered from eating the fast food, to come and join with them in the class action suit. That is how a large group is formed for the law suit. These types of law suits are frequently found in the pharmaceutical and medical industry.
One such class action lawsuit was filed against American Family Insurance, also known as the AmFam. It is a private insurance company, and mainly dealt with auto, casualty and property insurance. It offered several other types of insurance like health, life, retirement and home owner’s coverage. It was listed as a Fortune 500 company in 2008. 33 States from the United States filed a class action law suit because the company used computer software to reduce the claim amounts. It was filed in the city of Madison in Illinois. Several people were financially harmed due to the scam conducted by the insurance company. The company was ordered to pay all the claims dating back to 1990.
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