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Allstate wins $11.5M judgment in Los Angeles suit over insurance claims fraud

Allstate Corp. has received a judgment worth $11.5 million in Los Angeles County Superior Court after the insurer alleged that eight sham law firms had engaged in claims fraud.

In the scheme, a group of people paid licensed lawyers for the use of their names to create fake law firms, which then filed fraudulent or misleading claims against insurance companies. The insurance payments were then converted into cash for their own use.