Allstate to Pay $90 Million in a Shareholder Class-Action Settlement

Allstate agreed to pay $90 million to settle a class action lawsuit by shareholders who accused the insurer of defrauding them by concealing that it lowered underwriting standards to boost growth.

A preliminary settlement was filed on Monday in federal court in Chicago, and requires a judge’s approval.

The lawsuit came after Allstate on Aug. 3, 2015, reported unexpectedly high claims payouts from auto accidents, causing a larger-than-expected 38% decline in quarterly operating profit.

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