American Corporation Litigation ActionWatch

When executives of large corporations resort to litigation or the threat of litigation against consumers to conceal mistakes or unethical business practices, AmericanCLAW is ready to help fight back. We are a new non-profit organization with a mission to hold corporate executives accountable for the unethical actions of their corporations, and to seek settlements for the consumers. Our first case is Allstate Insurance, and the executives accountable are Mike Fiato and Elizabeth Brady. 

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AmericanCLAW 

 Three Phase Process 

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Phase 1: This platform serves as a space where consumers can share evidence about corporate misconduct.  We then add our opinions and commentary on the case. Next, we reach out to the responsible corporate executives, giving them the chance to challenge the consumer's claims or rectify any posted information. Their responses are then included on this site. In Phase 1, our primary objective is to ensure executives comprehend the claim and are provided a fair opportunity to respond. This is a Beta site and not publicized; public notification occurs in Phase 2. 

 

Phase 2:  If settlement is not reached after Phase 1, we don't immediately initiate a lawsuit.  Recognizing that corporations like Allstate are already entangled in numerous legal battles, adding one more may not significantly impact their behavior. Instead, we leverage the influence of social media to go viral. Our team of social media specialists craft compelling videos that highlight the case, and we contract with social influencers to share the videos. The videos serve two key purposes: first, they alert consumers about the corporation's unethical conduct and the responsible executives. Second, they function as recruitment tools to connect with other customers who may have suffered similar harm, inviting them to participate in a potential class action lawsuit. 

 

Phase 3:  If a settlement is not achieved in Phase 2, we proceed by presenting our analysis and a compiled list of recruited claimants to law firms specializing in consumer class action lawsuits. If there is already an active class action lawsuit involving the same misconduct, we extend our support to it. Once we decide on the law firm to collaborate with we provide them with additional named claimants recruited through ongoing viral campaigns. Additionally, we assist law firms in the statistical analysis of data obtained through trial discovery. Recognizing that class action lawsuits alone may not sufficiently incentivize corporate executives to change their behavior, we emphasize the combination of the lawsuit and our viral social media campaigns as the catalyst for change.

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Case 1: Allstate Insurance Company

 

Imagine this: You are peacefully driving to your 7 am beach walk,  and you are stopped at a red light on a quiet stretch of road.  Suddenly, a speeding car crashes headfirst into yours, in an accident that could alter your life permanently. You'd naturally assume that your insurance company has your best interests at heart, treating you with compassion and fairness. However, if you're insured with Allstate, they exploit your expectation of fair treatment, taking advantage of it, and deceiving you. 

 

Allstate markets itself as a friendly insurance company that gives you a fair shake. But, according to accredited rating agencies, the opposite is true. The American Association for Justice (AAJ) Ranks Allstate as the worst auto insurance company in the USA. The AAJ uncovered documents that show that Allstate encourages their employees to fight against their own policyholders who have suffered a loss or who have been injured.  Allstate shows little interest in settling their customers' insurance claims fairly. The AAJ succinctly sums up Allstate - “The company essentially uses a combination of low-ball offers and hardball litigation.”  Corroborating these findings, Consumer Reports ranks Allstate 24th out of 26 auto insurance companies. Our case exemplifies why Allstate's poor ratings are justified and demand action.  

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The Accident   

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On November 12, 2023 a driver insured by Allstate (the victim) was stopped at a red light in New York when another driver (also insured by Allstate) collided headfirst into the victim's car. The victim's vehicle was declared a total loss, and the victim sustained neck and neurological injuries.  Fortunately, the victim obtained video footage of the accident, and the video proved that he was 100% faultless. 

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The Auto Total Loss Claim

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In an accident where you are entirely blameless, you may expect your insurance company to make a sincere effort to offer a fair assessment for your totaled car.  Not true with Allstate. The Allstate adjuster assigned to the auto claim, James, provided an appraisal that was thousands less than the true value of the car. He accomplished this by deducting heavily for minor flaws in the condition of the totaled car and ignoring attributes of the car that would increase the car's value. Our research also uncovered that Allstate adjusters operate under stringent oversight from "Reinspectors" tasked with ensuring claims costs are minimized.  We obtained an interview with an Allstate adjuster who stated: "Reinspectors will write us up if we fail to identify ways to reduce a claim." The adjuster emphasized that Allstate penalizes them for treating their own customers fairly.  So Allstate can not claim that  individual adjusters are responsible for underpaying claims, it's part of  the Allstate corporate culture. 

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The following meticulous analysis of the evidence demonstrates the specific ways in which Allstate manipulates data to underpay claims. 

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The Auto Claim Evidence

Allstate produces automobile valuation reports through an application provided by a third-party company called CCC Information Services, Inc. (“CCC”). CCC is a known enabler of corporate malfeasance and is involved with numerous lawsuits alleging that their software and process consistently undervalue totaled cars.  Allstate is also currently facing a class-action suit in New York State related to how the CCC report undervalues totaled cars. However, the specific case under consideration here differs.

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Our claim centers on the assertion that Allstate adjusters deliberately input inaccurate information into the CCC software application and intentionally overlook or suppress other relevant information that would otherwise raise the value of the totaled car. 

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To assess the impact of the car's condition on its value, Allstate utilizes a condition matrix provided by CCC. The first indication of Allstate's deceptive practices towards their customers becomes evident in the modifications made to the standard labeling of the condition levels. The standard CCC condition levels consist of "Major Wear" (which reduces the car's value), "Normal Wear" (no change to value), "Dealer Ready" (which adds value), and "Exceptional" (which adds even more value). However, for reasons that will become apparent, Allstate altered the label "Major Wear" to "Fair" and "Normal Wear" to "Private Owner."

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Below is the standard condition matrix applicable to the victim's car seats: