Settlement Proposed in Insurance Agent Class Action Against ChoicePoint

Insurance agents and agencies who provided personal information regarding potential or actual insureds to ChoicePoint Services Inc. between Jan. 1 1997, and Aug. 9, 2005, may be entitled to money and other benefits as a result of a proposed settlement in a class-action lawsuit that insurance agents filed against that firm in Illinois.

In CF&H Insurance Agency Inc., et al., v. Statewide Data Services Inc., et al., a group of insurance agents claimed that ChoicePoint and its related affiliates took confidential, personal customer information from agents’ requests for C.L.U.E. underwriting reports and created prospecting lists (Lead Lists), which it sold to the agents’ competitors. ChoicePoint also was accused of selling Lead Lists to agents that contained information the company had wrongfully obtained from those same agents.

The defendants, ChoicePoint Inc., ChoicePoint Direct Inc., Statewide Data Services Inc., and ChoicePoint Services Inc., have denied any wrongdoing or liability.

The court has not ruled on the merits of any of the claims, or the defenses asserted by the parties in the litigation. Furthermore, the defendants said they took remedial measures as early as 2002 to address the issues raised by the insurance plaintiffs in their complaint.

Members of the plaintiffs’ class include all insurance agents and agencies that made a request for C.L.U.E. Auto, C.L.U.E. Personal Property and/or National Credit File underwriting information, and/ or who purchased a list of consumers and contact information used for personal lines (auto and homeowners) insurance marketing purposes from the defendants between Jan. 1, 1997, and Aug. 9, 2005.

The proposed class action settlement the parties have entered into would require the defendants to provide:

• A cash settlement fund, not to exceed $7 million, to compensate agents whose data was wrongfully used. Each qualifying class member’s benefits would be $26.74 for every 1,000 inquiries that the class member submitted to defendants from Jan. 1, 1997, to Feb. 28, 2002.

• Lead List Benefits/ Certificates of Value. The certificates will not exceed $7 million and would be valued at 15 percent of the total value spent by qualifying class members of lead lists from the defendants. The certificates will be valid for 90 days after issuance.

• Charitable Contributions of $500,000, half of which would be allocated to the University of Illinois and the remaining half would be allocated to Southern Illinois University in Carbondale.

Additionally, the defendants would agree not to engage in similar conduct in the future.

Brokers or agents who qualify for benefits under the proposed settlement were required to postmark and complete a claim form no later than Dec. 7, 2005, to the settlement administrator.

For more information, and a copy of the settlement agreement, visit http://www.datalitigation. com/.

Settlement Proposed in Insurance Agency Class Action Against ChoicePoint

Insurance agents and agencies who provided personal information regarding potential or actual insureds to ChoicePoint Services Inc. between Jan. 1 1997, and August 9, 2005, may be entitled to money and other benefits as a result of a proposed settlement in a class-action lawsuit that insurance agents filed against that firm in Illinois.

In CF&H Insurance Agency Inc., et al., v. Statewide Data Services Inc., et al., a group of insurance agents claimed that ChoicePoint and its related affiliates took confidential, personal customer information from agents’ requests for C.L.U.E. underwriting reports and created prospecting lists (Lead Lists), which it sold to the agents’ competitors. ChoicePoint also was accused of selling Lead Lists to agents that contained information the company had wrongfully obtained from those same agents.

The defendants, ChoicePoint Inc., ChoicePoint Direct Inc., Statewide Data Services Inc., and ChoicePoint Services Inc., have denied any wrongdoing or liability, and there has been no adjudication of the issues raised in the class-action. Furthermore, the defendants said they took remedial measures as early as 2002 to address the issues raised by the insurance plaintiffs in their complaint.

Members of the plaintiffs’ class include all insurance agents and agencies that made a request for C.L.U.E. Auto, C.L.U.E. Personal Property and/or National Credit File underwriting information, and/ or who purchased a list of consumers and contact information used for personal lines (auto and homeowners) insurance marketing purposes from the defendants between Jan. 1, 1997, and Aug. 9, 2005.

The proposed class action settlement would require the defendants to provide:

• A cash settlement fund, not to exceed $7 million, to compensate agents whose data was wrongfully used. Each qualifying class member’s benefits would be $26.74 for every 1,000 inquiries that the class member submitted to defendants during the specified time period.

•Lead List Benefits/Certificates of Value. The certificates will not exceed $7 million and would be valued at 15 percent of the total value spent by qualifying class members of lead lists from the defendants.

• Charitable Contributions of $500,000, half of which would be allocated to the University of Illinois and the remaining half would be allocated to Southern Illinois University in Carbondale.

Additionally, the defendants would agree not to engage in similar conduct in the future.

Brokers or agents who qualify for benefits under the proposed settlement were required to postmark and complete a claim form no later than Dec. 7, 2005, to the settlement administrator.

For more information, visit http://www.datalitigation. com/.