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Headlines 11/08/2007

Louisiana Hires HHKC to Pursue Antitrust Case Against Major Insurance Companies for Underpaying Claims.

In a lawsuit filed today in the Civil District Court for the Parish of Orleans, the State of Louisiana, represented by HHKC and others, seeks relief for the State and Policyholders in association with the use of computer programs to systematically underpay claims.  In violation of the State's Antitrust Laws, urged by consultant McKinsey & Company, State Farm, Allstate, Travelers and the other property and casualty companies developed and used Xactware and other computer models whose "costs" were intentionally and systematically deflated to support the underpayment of hurricane and other claims.  HHKC, which is pursuing similar class actions against State Farm, Travelers, and Lafayette insurance companies, won a key victory in Federal Court several months ago when the Court denied State Farm and Xactware's motion to dismiss fraud, conspiracy and bad faith claims.

View Filed Petition Here

 

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