A California federal jury awarded Allstate Insurance Company compensatory and punitive damages totalling $3.02 million against a group of defendants who allegedly participated in a fraud conspiracy after the Northridge earthquake.
The defendants, including former adjuster Harry Booth and two principals of Dunn Rite Construction Co., Don Ames and Gene LaPorte, were found liable for work they did in the wake of the 1997 temblor. Previously, a former principal of Western States Geotechnical and a general contractor of Moretti and Associates and Empire West Construction agreed to the entry of judgment of $400,000 against them for their alleged participation in the fraud ring.
Allstate also lent its assistance in a separate federal investigation related to the Northridge quake, leading to the indictment of former independent adjuster Ron Eubanks and Leandre Davis, owner of Shadowbrook Design. Moreover, the insurer is involved in a lawsuit it filed against a number of individuals and a general contracting company, maintaining that those defendants defrauded Allstate with respect to certain Northridge earthquake claims.
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