NU Online News Service, April 1, 1:26 p.m. EST
WASHINGTON–The U.S. Supreme Court, in ruling on what qualifies as a class action, has reinstated a suit that accuses Allstate of routinely refusing to pay interest when it is late with a benefit payment.
The class action case was brought in New York where lower courts ruled that state's law prohibits class actions where the suit involved seeks penalties or statutory minimum damages. The court concluded that the interest charges qualify as a penalty.
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