MARION, IL, Oct. 4, 1999 -- State Farm policyholders won $456 million in damages in a class action suit that accused the company of forcing body shops to use substandard repair parts.
Lawyers for the policyholders said the after-market parts did not provide the same fit and finish quality as original manufacturer parts. They accused State Farm, the nation's largest auto insurer, of breaching its contract with policyholders by failing to restore damaged cars to their pre-accident condition.
The suit had sought damages of $5.4 billion but attorneys said the reduced verdict was still a "great victory for policyholders and the body-shop industry."
State Farm officials said they would appeal. They argued during trial that the cheaper parts saved policyholders money.
