State Farm to Pay $250 million Settlement for Karmeirer Campaign Donation Lawsuit

We fight State Farm all the time in cases.

Did you know that State Farm has agreed to a $250 million settlement for a federal lawsuit which
accused the company of breaking federal racketeering laws by donating extra money to the election campaign of
Illinois Supreme Court Justice Lloyd A. Karmeier and failing to disclose the amount. The case is Hale v.
State Farm.

Plaintiff’s were represented by the Clifford Law Offices. They were representing the class in a suit against State Farm,
challenging the company’s authorization to use non-factory vehicle parts for vehicles involved in accidents – called
Avery v. State Farm.

The 1999 $1 billion jury verdict against State Farm in the Avery case was reversed by the Illinois Supreme Court in
2005. Judge Karmeirer was the deciding vote on the case. Millions of dollars were funneled into Karmeier’s 2004 campaign
by State Farm and other insurance companies before deciding the case.

When Karmeirer was challenged by Plaintiff’s, State Farm lied about the amount of contributions given. See
my previous article about this case here.

The settlement provides benefits to over 4 million current and former State Farm policyholders who were members of the
class in Avery v. State Farm.

In 2015, a federal judge in the Southern Illinois district approved class-action status for a lawsuit by policyholders
who alleged that State Farm directed campaign contributions that made their way to the coffers of the committee to elect
Karmeier to the Illinois Supreme Court. Judge Karmeier was not named in the suit.

You
can read more about Hale v. State Farm here.

As we approach election season, this case highlights the importance of the Missouri Plan. The Missouri
Plan provides that the governor selects judges, who are recommended by a non-partisan commission. These judges are
retained by citizen vote.

This system ensures that our States judicial selection is not controlled by partisan campaign spending. In states such
as Illinois where judges are elected, insurance companies have the opportunity to spend millions of dollars, buy
judicial influence, and potentially change the outcome of important cases.

A number of states have adopted the Missouri plan, and we should be proud of our State and our judicial system. We must
also fight to preserve this plan and keep politics out of our judiciary. Learn
more about the Missouri Plan here.

Gary Burger

Founder | Injury Attorney
Gary Burger has dedicated his career to standing up against bullies. The founder and principal attorney of Burger Law | St. Louis Personal Injury Lawyer has helped hundreds of Missouri and Illinois individuals and families recover th …
Years of experience: 30 years
Location: St. Louis, MO

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