Oklahoma Attorney General Gentner Drummond accused State Farm of operating like a criminal enterprise, filing a petition Dec. 4 citing the state’s version of federal RICO laws originally designed to dismantle the mafia.
The petition seeks to intervene in as many as 200 cases alleging State Farm pre-denies legitimate claims for hail and wind damage to policyholders’ roofs. If District Court Judge Amy Palumbo grants the motion, Drummond can deploy substantial subpoena powers to prove the alleged scheme exists.
State Farm has faced racketeering accusations before. In 2004, a long-shot judicial candidate named Lloyd Karmeier won an Illinois Supreme Court seat after the most expensive judicial election in history raised $9.3 million. Karmeier quickly cast the deciding vote, overturning a $1.1 billion settlement against State Farm. Investigators later discovered Karmeier received as much as $4 million in campaign donations from the insurer.
State Farm settled that case for $250 million in 2018, just before trial, avoiding billions in damages and the permanent brand of a criminal enterprise.
The current allegations track with a confidential 2007 McKinsey report that advised insurers to lowball payments and fight back aggressively when policyholders objected. Drummond is seeking similar internal documents to prove State Farm’s alleged pattern of racketeering activity.
State Farm must respond by Dec. 22.
Read the details in J.C. Hallman’s latest story.
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State Immigration Law on Ice, but Fear Remains
While implementation of House Bill 4156 has been placed on hold by a federal judge amid ongoing constitutionality challenges, advocates who work with the state’s immigrant communities say the 2024 law, which creates a new crime called “impermissible occupation,” continues to generate fear across the state. [Oklahoma Voice]
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Mistletoe is Oklahoma’s oldest symbol, chosen as Oklahoma Territory’s floral emblem in 1893.
Bon Voyage, Watchers! I’m practicing my karaoke version of “Feliz Navidad” and dreaming of a turquoise Christmas. I’ll think of you while sipping a mai tai on the beach. The ship even has an ice rink on Deck 3, so we’re packing our skates along with our swimsuits. First Watch will return to your inbox on Jan. 5.
Many of you have expressed appreciation for this newsletter and what we do at Oklahoma Watch. We appreciate you reading and supporting our work. Please accept my wishes for a happy holiday season.
Ciao for now,
Ted Streuli
Executive Director, Oklahoma Watch
tstreuli@oklahomawatch.org
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