What is this lawsuit about?

Plaintiffs allege that GEICO Advantage Insurance Company, GEICO Indemnity Company, Government Employees Insurance Company, GEICO County Mutual Insurance Company, and GEICO Choice Insurance Company (“Defendants”) breached their contracts (Personal Automobile Insurance Policies) by failing to fully pay Plaintiffs and other Texas insureds who submitted first-party damage claims for their vehicles during the Class Period, and which resulted in a Total Loss Claim payment. Specifically, Plaintiffs allege that Defendants failed to pay full Sales Tax and/or Regulatory Fees following a total loss. GEICO maintains it complied with the terms of the Personal Automobile Insurance Policies and applicable law. GEICO denies that it acted wrongfully or unlawfully and continues to deny all material allegations.

How do I know if I am part of the Settlement Class?

Members of the Sales Tax Settlement Class include all Insureds covered under any Texas private passenger automobile insurance policy that defined “Actual Cash Value” under Section III of the policy as “the replacement cost of the auto or property less depreciation and/or betterment” issued by GEICO or its affiliates who made a first-party physical damage claim on a leased vehicle between May 5, 2016 and March 18, 2024, that GEICO paid as a total loss under comprehensive or collision coverage and who did not receive full state Sales Tax based on the adjusted vehicle value of the totaled vehicle as part of the Settlement Payment and who did not timely opt out from the Settlement Class by June 25, 2024.

What does the Settlement provide?

As a part of the Settlement, Defendants and affiliated entities (collectively “GEICO”) have agreed, upon Court approval, to pay Settlement Class Members who timely submit a valid timely Claim Form. For Sales Tax Class Members, GEICO will pay Texas state sales tax of 6.25% based on the adjusted vehicle value at the time of the loss and $80 in Regulatory Fees (less any amount in Sales Tax and Regulatory Fees paid by GEICO as part of the Total Loss Claim payment), reduced by each claimant’s proportional share of Class Counsel Fees and/or court-awarded costs.