ALL.US
id: 803
Allstate Corporation (ALL) $90M Shareholder Settlement
It is still possible to file a late claim. The court will decide whether to accept late claims or not.
N.D. Illinois
Court1:16-cv-10510
Case number29 Oct 2014
Class period Start03 Aug 2015
Class period End08 Feb 2024
Claim deadlineAllstate $ALL agreed to settle $90 million with shareholders over claims of misleading about the spike in its auto insurance business.
The lawsuit came after Allstate reported unexpectedly high claims payouts from auto accidents, causing a larger-than-expected decline in quarterly operating profit.
- On August 3, 2015, Allstate reported disappointing Q2 2015 financial performance. The company revealed that it had experienced a third consecutive quarter of increased frequency in auto insurance claims, leading to a significant 57% decrease in operating income. Moreover, the operating earnings per share fell short of the analysts' consensus estimate.
- Subsequent to the release, the CEO of Allstate explained that the decline in quarterly profit was primarily attributed to a decline in auto insurance margins. The CEO elaborated that the decrease in auto insurance margins was a result of higher claim frequency and severity, which outweighed the average increases in auto insurance prices.
As a consequence of these revelations, $ALL experienced a sharp and rapid decline, damaging shareholders.
On November 10, 2023, shareholders filed an initial complaint alleging the Company and its certain leaders issued false and misleading statements and/or failed to disclose adverse information regarding the Company's business and prospects, including that the reason for the sudden spike in its auto claims frequency, which they claimed was due to external events beyond the Company's control, including the weather and increased miles driven, was actually the result of Allstate's growth in its auto policy business through higher risk drivers.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.66
Filing date
10 November 2016
Plaintiffs
Carpenters Pension Trust Fund for Northern California, Carpenters Annuity Trust Fund for Northern California, City of Providence
Attorneys
Labaton Sucharow LLP, Pomerantz LLP, Thornton Law Firm
Defendants
Thomas J. Wilson, Matthew E. Winter
Judge
Hon. Robert W. Gettleman
Administrator
A.B. Data Ltd
Settlement agreement date
2023-08-14
Court hearing date
19 December 2023
Exclusion deadline
28 November 2023
Objection deadline
28 November 2023
Hearing deadline
28 November 2023
Trades matching type
FIFO
+$90,000,000
Cash Settlement Amount