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State Farm Class Action Over Cut Payments Goes Federal

Law360, Los Angeles (January 8, 2014, 10:16 PM EST) -- State Farm Mutual Automobile Insurance Co. on Wednesday removed to federal court a proposed class action accusing the company of improperly reducing medical payments to insureds by claiming discounts for networks to which it doesn't belong, saying the alleged damages exceed the threshold for federal jurisdiction.

State Farm said the U.S. District Court for the Western District of Arkansas has jurisdiction over the suit — which Christopher Cody Littleton originally filed on Dec. 10 in the Circuit Court of Washington County, Arkansas — under the Class Action Fairness Act because the amount in dispute exceeds $5,000, the proposed class comprises 100 or more individuals, and...

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Arkansas Western

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January 8, 2014

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