Antitrust Suit Against Allstate, State Farm Gets New Life

By Ben James

Law360, New York (August 10, 2010, 3:15 PM ET) -- A federal appeals court has revived a putative antitrust class action alleging Liberty Mutual Fire Insurance Co., Allstate Indemnity Co., State Farm Mutual Automobile Insurance Co. and others conspired to provide policyholders with inferior replacement parts.

A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit ruled Friday that the district court erred in dismissing the plaintiffs' claims on the grounds that they impermissibly challenged state-approved insurance rates.

The plaintiffs. California automobile insurance policyholders, claimed that insurers were part of a conspiracy that...
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