Attorney General Hood dismisses lawsuit against State Farm

On August 6, 2008, Mississippi Attorney General Jim Hood dismissed with prejudice the lawsuit he filed against State Farm in 2007. In June 2007, Attorney General Hood filed a civil lawsuit against State Farm® following Judge L.T. Senter's rejection of the Woullard class action settlement and Dick Scruggs’ subsequent withdrawal as class counsel.

Following Judge Senter’s rejection and Scruggs’ withdrawal, State Farm agreed to implement the essential terms of the class settlement under the supervision of the Mississippi Department of Insurance (MID). Shortly, thereafter, Hood sued State Farm, claiming the company had a legal obligation to negotiate a new class action settlement. His lawsuit sought at least $50 million in compensatory damages and punitive damages. 

Under terms of today’s settlement, each side will pay its own costs and attorney fees. The settlement does not involve payment of any money by State Farm; however, we agreed to send notices to 148 policyholders with total loss claims who have not participated in the MID Resolution Process. 

State Farm is satisfied the Attorney General understands that State Farm met its obligations under its agreements with the Attorney General in January 2007. State Farm has actively participated in a resolution process with the Mississippi Insurance. We continue efforts to resolve all pending matters relating to Hurricane Katrina.