GEICO to pay millions in separate settlements
GEICO to pay millions in separate settlements | Insurance Business America
Motor & Fleet
GEICO to pay millions in separate settlements
One case involves auto claims adjusters
Motor & Fleet
By
Terry Gangcuangco
GEICO is to shell out around $8 million to settle with auto claims adjusters and policyholders in two separate cases.
In the case involving auto claims adjusters, the Berkshire Hathaway subsidiary was accused of wage and hour laws violations. Lodged by both former and current colleagues in Maryland and New York, the complaints had been refuted by GEICO, claiming that the supposed overtime hours weren’t logged on the adjusters’ time cards.
According to Bloomberg Law, the $6 million settlement was approved by Judge George L. Russell III earlier this week.
Meanwhile, in a separate development, policyholders of the insurance giant have sought preliminary approval for a $1.9 million settlement. The New Jersey case features allegations that GEICO failed to pay title or registration transfer fees upon the total loss of insured vehicles.
The news comes after Progressive Insurance agreed to a $48 million settlement with New York drivers. In Progressive’s case, a class action lawsuit alleged that the company systematically undervalued claims made by the motorists whose vehicles were totaled.
According to the claim, the insurer supposedly employed third-party software that undervalued the pre-accident sales price of the vehicles to reduce payout amounts. Progressive agreed to settle but denied any wrongdoing.
In June, GEICO also made headlines after settling a case involving former WWE star Tammy Lynn Sytch, previously known as ‘Sunny’ in the wrestling organization.
As reported, the lawsuit was amended in July 2023 to drop Sytch and ex-fiancé James Pente, leaving GEICO as the sole defendant in the case. A notice was filed in June 2024 that the two sides had reached a settlement deal for an undisclosed amount.
Sytch, meanwhile, is in jail until November, 2039, following the death of Julian Lasseter in the crash.
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