Allstate Gets Claim Cut From Property Owners' Action

Law360, New York (October 5, 2011, 7:16 PM EDT) -- A federal judge on Wednesday trimmed a bad faith claim in a proposed class action accusing Allstate Insurance Co. of artificially inflating Oklahoma property owners' premiums and then failing to pay them full replacement costs for property damage.

U.S. District Judge Stephen Friot granted Allstate's bid for summary judgment on part of a bad faith claim accusing the insurer of artificially inflating homeowners' premiums by using its “Allstate Cost Estimator,” and he struck one of three proposed classes premised on that claim.

“Because plaintiffs cannot establish...
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