Chicago-based CCC Information Services Inc., a subsidiary of CCC Information Services Group Inc. announced it and 15 of its customers signed a settlement agreement with the plaintiffs in various class action suits pending in Madison County, Illinois.
These consolidated suits, In re Total Loss Class Action Litigation, Case Nos. 01 L 157, et al., relate to the valuation of vehicles that have been declared total losses by insurers. This settlement includes no admission of liability or wrongdoing by CCC or its customers. The proposed classes represent all customers of the settling carriers who had a total loss claim from Jan. 28, 1989 to the present, for which CCC’s product and service (now called CCC Valuescope) were used to perform the valuation.
The settlement itself is subject to Court approval, and a motion seeking preliminary approval of the settlement was filed with the Court this week. Notice to members of the settling classes will then be issued, and the company anticipates that a final approval hearing will take place before the end of the year.
“We are pleased that we have been able to work with our participating insurance company customers and agree upon terms that are equitable for all involved,” said Robert Guttman, senior vice president and general counsel for CCC. “The company has a strong belief in the integrity and accuracy of our valuation product and service. We concluded, however, that settlement of these suits is the best course of action in order to avoid further protracted litigation, expense and distraction.”
Terms of the settlement agreement will require CCC to pay notice and administration fees and other costs associated with the settlement. The company estimates that these costs will total approximately $8 million, and including available insurance proceeds of $1.8 million, the company is fully reserved for these payments. Other settlement costs, including claims by class members, will be paid by the insurance companies that are participating in the settlement.
In addition to its settlement contribution, CCC will also engage the services of an independent, third party as a Court-appointed monitor to periodically review CCC Valuescope’s methodology for five years following settlement and to oversee the performance of various product validation studies.
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