The lawsuit alleges that Allstate employs secret “price optimization” strategies, unrelated to a customer’s risk of loss, so it can charge high premiums to its long-time customers. The lawsuit alleges that Allstate’s research has shown that some long-time customers are more willing to tolerate price increases than newer customers who present the same risk.  Allstate charges some of its most loyal customers very high rates without disclosing that these rates are not based on the customer’s risk.

Our clients are three Allstate customers in Madison County, Illinois, who have each been Allstate policyholders for more than a decade.  They seek financial damages on behalf of themselves and similarly situated Allstate customers who were secretly charged higher prices than are justified based on the customer’s estimated risk of loss. We are now conducting pre-trial discovery about Allstate’s pricing methods.  At the same time, Allstate filed its interlocutory appeal in the Fifth District Court of Appeals claiming that the case should be dismissed. That appeal is pending.

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