State Farm Mutual Automobile Insurance Co. has avoided the racketeering trial related to its alleged involvement in the election of an Illinois Supreme Court justice after agreeing to a $250 million accord, Chicago Tribune reported.
State Farm allegedly helped in the 2004 election of Lloyd Karmeier to the Supreme Court of Illinois to wipe out a $1 billion jury verdict related to policyholders' claims that the insurer used auto parts of poor quality to repair damaged vehicles.
The settlement comes after State Farm failed in its attempts to block the lawsuit and push for summary judgment.
State Farm has agreed to settle the lawsuit but denied any wrongdoing, according to the report. Customers were seeking about $8.5 billion in damages in the trial scheduled to begin Sept. 4 in a federal court in East St. Louis.
The settlement covers customers in all U.S. states, except Arkansas and Tennessee, who bought a vehicle casualty policy with State Farm between July 28, 1987, and Feb. 24, 1998.
A State Farm spokesman did not respond to the news outlet's email seeking comment on the settlement.