California IN BRIEF : SAN DIEGO : State Farm Asks to Join Lawsuit
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State Farm Insurance is asking to join a multimillion-dollar civil lawsuit against a network of Southern California attorneys accused of bilking insurance companies. The Illinois-based company is seeking to collect about $8.1 million from “the Alliance.” State Farm on Friday filed legal papers in a bid to join an existing $30-million suit against the Alliance, which was filed in federal court in San Diego by the Fireman’s Fund and Allstate Insurance companies. The principal defendant in the civil litigation and in a related criminal action is Lynn Boyd Stites, a Los Angeles lawyer indicted by a San Diego federal grand jury along with 17 other alleged members of the Alliance. Stites, the network’s reputed leader, is a fugitive. The criminal case alleges that Stites and Alliance members conspired to manipulate complex civil cases in Southern California courts to reap bloated fees from insurance companies. U.S. officials estimated industry losses at $50 million, while industry sources tabbed losses at $200 million.
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