Allstate Refuses to Abide by Court Order

posted on:
January 24, 2008



In an arrogant and defiant move, Allstate Insurance Co. has made it clear that it won’t produce key records for public view no matter how much a judge fines the company. 

Judge Michael Manners has already fined the company $25,000 a day since mid September – a total of $2.4 million and growing.

In November, the Missouri Supreme Court ordered the documents produced. At issue are the so-called McKinsey documents that we have written about in previous issues. These documents show how Allstate set up a claims payment system in the 1990s that shortchanges policyholders while earning huge profits.

Allstate contends the 12,500 pages prepared by consultant McKinsey & Co. are trade secrets used to create company policies, methods and claims procedures.

I am not sure where this dispute is headed. Judge Manners has had hearings and a trial date was set for a date in July. We will keep you posted on future developments.

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