Florida’s Citizens Property Insurance Corp. is facing a class action lawsuit alleging that it improperly awarded dozens of no-bid contracts worth more than $49 million.
The lawsuit filed in Tallahassee seeks unspecified damages for the 1.2 million Citizens policyholders.
The attorney who filed the complaint, Rick Bateman of Bateman Harden, said the alleged mismanagement costs policyholders in higher rates.
Citizens is supposed to take competitive bids for all contracts above $25,000, except in emergencies or when there is one vendor. The lawsuit says 33 contracts since 2004 have violated those rules.
A Citizens statement said all 33 contracts in question were properly awarded.
Florida’s auditor general in 2006 also raised questions about Citizens’ contracting process. Earlier this month, CFO Alex Sink also urged Citizens to reform its contracting procedures.
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