The State Farm Employee Class Action lawsuit revolves around the claims of several hundred former farm workers that they were discriminated against while working for State Farm. According to the lawsuit, the company implemented an illegal quota system where certain employees were hired based on their age and education level. Many of those who filed the suit are members of the Federal Trade Commission, which represents consumers. They claim that State Farm illegally discriminated against its current and former employees.
State Farm Employee Class Action Lawsuit
The lawsuit seeks final approval of class action status for thousands if not millions of other individuals who have been taking their initial steps toward being a State Farm representative. The class action lawsuit is seeking final approval of the Class Action Lawsuit and is asking that both parties reach a settlement agreement by a set date in February 2021.
The lawsuit targets both current and former State Farm agents. The lawsuit focuses mainly on term limited independent contract agents (TICAs) who can later become full-fledged State Farm representatives after a twelve-month TICA contract is entered into.
According to the complaint, State Farm has notified all of its class members of the pending litigation.
This notification does not give the members of the class time to study the litigation and formulate an answer to what is expected to be a massive class action settlement. Instead, the notice instructs them to wait for a final approval from the State Farm board of directors.
The class members feel that the State Farm board has no legitimate reason to keep them waiting for such a long time. They also state that the company has refused to give any explanation as to why it has not given the required notice.
Plaintiffs further allege that they have been the victims of fraud and breach of contract by the company and its agents.
They further claim that the company fraudulently represented that the proposed settlements were final and that plaintiffs would never recover anything beyond the amount of the promised settlements. When the plaintiffs filed their lawsuit in the county court, the defendants immediately filed a motion to dismiss claiming that the lawsuit was brought on behalf of a “stake holder” and therefore not entitled to a final trial.
In essence, the defendants believe that the plaintiffs cannot collect a million or even a billion judgment out of a million dollar settlement because the case is not a final one.
Plaintiffs state that the defendants have a very personal interest in denying them their right to seek final approval of their lawsuit.
First, the defendants are protecting their own financial interests through the denial of their claims. Second, they have a strong interest in avoiding providing any final approval of the class action lawsuit.
Since class members have not yet received final approval of their class action lawsuit, the defendants fear that if the class members receive final approval and demand a settlement, the Company will be faced with millions of dollars in liabilities as a result of the class action lawsuit. Finally, the defendants have no stake in the lawsuit since the class members will receive payment from the insurers.
Plaintiffs argue that the defendants’ defense of allowing the Class Action lawsuit to proceed is based on numerous grounds. First, the defense contends that there is no basis for class actions, including mandatory certification and the legality of mandatory insurance settlements. Next, they argue that the plaintiffs are not likely to receive a substantial amount of money as a result of their claims. Finally, the defendants claim that the plaintiffs’ only likely option to obtain a final approval of their class action lawsuit is to pursue an appeal before the U.S. Supreme Court.