Benjamin J. Fogel, et al. v. Farmers Group Inc., et al.
Published: Oct. 30, 2010 | Result Date: Oct. 7, 2010 | Filing Date: Jan. 1, 1900 |Case number: BC300142 Settlement – $455,000,000
Court
L.A. Superior Central
Attorneys
Plaintiff
Walter J. Lack
(Engstrom, Lipscomb & Lack)
Graham B. LippSmith
(LippSmith LLP)
Thomas V. Girardi
(Girardi & Keese)
Defendant
Raoul D. Kennedy
(Skadden, Arps, Slate, Meagher & Flom LLP)
Facts
Farmers Group Inc. (FGI), a subsidiary of Zurich Financial Services Group, charged management service fees to the Farmers Exchanges (Exchanges). Benjamin Fogel as well as other plaintiffs, held automobile, homeowners, and umbrella insurance policies through the Exchanges, which are reciprocal insurance exchanges.
Fogel, and other Exchanges policyholders, filed a class action suit against FGI and Zurich, as well as the Exchanges, alleging breach of fiduciary duties.
Contentions
PLAINTIFF'S CONTENTIONS:
Policyholders contended that the Exchanges required all policyholders to appoint FGI as their attorney-in-fact through their subscription agreements, and that FGI breached its duty by committing fraud by charging excessive fees.
DEFENDANT'S CONTENTIONS:
Zurich denied the allegations.
Result
The parties reached a settlement for $455 million
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