Geauga County, OH: (Aug-28-07) A class action lawsuit was filed against Grange Mutual Casualty Co., alleging that the insurance company overcharged policyholders. The suit, against Grange Mutual, settled a dispute about premiums that 199,600 people paid for under- and uninsured motorist coverage between 1994 and 1997.
In a settlement reached, the company agreed to a $51 million payout to resolve allegations. Sources state that the settlement was reached after a jury found the insurance company liable and awarded compensatory damages. Without the settlement, the jury could have come back after another hearing and awarded punitive damages as well. The agreement also means there will be no appeals. As part of the settlement, $16 million will be paid as attorneys fees, with up to $35 million going to eligible policyholders. Grange and its law firm stated that they would distribute up to $30 million of the settlement to charities if the money is not claimed by the policyholders. The $51 million settlement in the Geauga County lawsuit could benefit thousands of Ohio motorists and also help dozens of local and statewide charities. [PLAIN DEALER: INSURANCE POLICYHOLDERS]
