Allstate has settled a class action suit alleging the carrier engaged in a nationwide practice of racial discrimination in premium pricing through its use of customer credit scores.

The case, filed in 2001 in U.S. District Court, Western District of Texas San Antonio division, was brought by seven individual Allstate customers seeking to represent a nationwide class of African-Americans and Hispanics allegedly discriminated against in personal lines policy pricing due to their credit scores.

U.S. District Judge Fred Biery gave preliminary approval to the agreement Friday.

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