Allstate Call Recording Settlement: $3.3M

Consumers are eligible for settlement benefits if:

1. They received a call from Allstate’s Claims Liability Determination Unit on their cell phone,
2. Between February 1, 2022, and December 31, 2022, and
3. Did not consent to the call being recorded.

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Allstate has agreed to a $3.3 million settlement to resolve claims that it recorded phone calls with consumers without their consent, violating California’s Invasion of Privacy Act (CIPA). The settlement benefits individuals called by Allstate’s Claims Liability Determination Unit on their cell phones between February 1, 2022, and December 31, 2022, if those calls were recorded without their consent.

In the class action lawsuit, the plaintiffs alleged hat Allstate recorded outgoing calls to cell phones without obtaining prior consent, violating CIPA § 632.7(a). Allstate, a major insurance provider, denies any wrongdoing but agreed to settle the claims to avoid further litigation.

The settlement establishes a $3.3 million fund to provide cash payments to eligible class members. Payments will be distributed equally among those who file valid claims, with the exact amount varying based on the number of claims submitted. In addition to distributing settlement payments, the fund will cover attorneys' fees, administrative costs, and a service award for the class representative. Any remaining funds from uncashed checks may be donated to a charitable organization.

Eligible individuals must submit a valid claim form by October 30, 2024, to receive a share of the settlement fund. The cash award amount will depend on the number of valid claims. Currently, no specific estimates are available.