Allstate, Roberto Clemente Agency Settle Racial Bias, Fraud Dispute

The son of the late Major League Baseball Hall of Famer Roberto Clemente and Allstate Insurance Co. have settled their disputes over Allstate’s cancellation of the Clemente Family Agency’s contract and allegations of racial bias.

The parties have been in mediation since a federal judge in April 2023 allowed the Clemente claims that the insurer committed fraud and racial discrimination in its relations with the Pittsburgh agency to proceed.

Roberto Clemente Jr., the Black Latino son of the late ballplayer, and family members involved in the business accused the insurer of causing their agency to be investigated so that the insurer could then terminate its exclusive agency agreement and give its book of business to another agency. The Clementes contended that the insurer accused them of fraud for using auto insurance discounts that they said the insurer instructed them to use.

They also alleged that Allstate treated their agency differently than it treated white-owned agencies over various matters including whether they would be allowed to use the family name in the agency name.

Allstate denied the allegations.

The original suit was filed in 2022. The parties reported to the court this past July that they had reached a resolution and were working on final terms. On October 29, Judge Christy Criswell Wiegand in federal district court in Pittsburgh dismissed the case after receiving a final status report on the terms of the agreement, which were not disclosed.

The agency’s website and phone number appear to be inactive.