2 Insurance Firms Agree to Testify in Antitrust Suit
Two of the nation’s biggest insurance companies, sued in one of the largest antitrust lawsuits in Texas history, have agreed to testify for the state and pay $500,000 in legal costs each, Atty. Gen. Jim Mattox said today.
Mattox said Travelers Insurance Co. and St. Paul Fire & Marine Insurance Co. also agreed to cease certain industry activities in the settlement agreement signed by state District Judge Pete Lowry.
“In essence, these companies have entered a (no contest) plea and have agreed to testify for the state as the lawsuit continues against the other defendants,” Mattox said.
The state is accusing the insurance industry of seeking to create a phony “insurance crisis” several years ago in which insurers claimed that an increase in lawsuits was forcing them out of the commercial liability field.
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