State Farm just agreed to pay $250 MILLION dollars to settle a civil racketeering (RICO) case alleging it engaged in an enterprise for the purpose of illegally funnelling $4 million dollars in 2004 into a campaign to elect a faborable judge to the Illinois Supreme Court. That judge eventually was elected and was theeciding vote overturning a $1 billion judgment in Avery v State Farm where a class of consuemrs were awarded a big vicotry concerning improper use of none OEM repair parts.
Now if all this sounds like mumbo jumbo, it’s from me trying to summarize in a paragraph things that took 20 years to happen in real life. Here’s what to take from it. State Farm says it did anything wrong, but State Farm paid $250 million for the privilege of not having a court rule to the contrary. If you are a State Farm policy holder (as I used to be), this money came from your premiums. Your money, your choice.
(By the way, don’t call me about this case. It wasn’t my case. I just read about it.)
Here’s the article.