CCC Settles Class Action Suit on Valuation of Total Loss Vehicles

July 15, 2005

Chicago-based claims software-maker CCC Information Services Inc. announced that it and 15 of its customers signed a settlement agreement with the plaintiffs in various class action suits pending in Madison County, Ill. These consolidated suits, Case Nos. 01 L 157, et al., relate to the valuation of vehicles that have been declared total losses by insurers.

CCC said the 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 Wednesday. Notice to members of the settling classes will then be issued, and the company said it anticipates that a final approval hearing will take place before the end of the year.

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 about $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.

Topics Lawsuits Profit Loss

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Latest Comments

  • April 27, 2020 at 12:42 pm
    Pat says:
    Insurance Co's should pay the average NADA price that auto dealers expect to get and buyers expect to buy, with adjustments for mileage and options. When my car was totaled, b... read more
  • April 19, 2020 at 4:30 pm
    Jillian says:
    When you purchase a vehilce do you ask the dealer for the highest value they will give you? No you ask for a fair deal or best or lowest. ~ so your asking the insurance compan... read more
  • January 25, 2020 at 5:46 pm
    Morgan T Hairston says:
    I have filed a small claims 3rd party suit against the at-fault party, sent a demand for payment to them and the adjuster from National General (Direct), after receiving a low... read more

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