A proposed Class Action Settlement Agreement has been reached in a class action against Founders. The Parties have agreed to settle the case, subject to the approval of the Court.
Why was a Notice issued? You have been identified as a “Settlement Class Member” based on insurance claim records maintained by Founders, because you were an Ohio resident insured by Founders and submitted a physical damage claim for a covered vehicle during the during the period between November 13, 2012 through April 7, 2022 that resulted in a total loss claim payment.
What is this lawsuit about? The Settlement resolves a lawsuit claiming that Founders was required under its insurance policies to pay sales tax and/or title and tag fees to customers who submitted Ohio first-party total loss vehicle claims. Founders denies any wrongdoing and disputes that it was required to pay any taxes or fees.
Settlement Terms. Founders will pay sales tax at the average rate paid during the Class Period, Title Transfer fees of $15.00 and Registration (Tag) Transfer fees of $4.50. In addition, Founders will pay attorneys’ fees and costs up to $182,500.00 and $5,000.00 as a service award to the Class Representative. These payments will not reduce the amount of money available to Settlement Class Members.
How do I Receive Payment? To receive a payment, you must timely complete and mail the Claim Form attached the mailed Notice or submit a Claim Form on this website. Claim Forms must be postmarked or submitted online by August 26, 2022.
Do I have any other options? Unless you file a Claim Form, you will not get a Settlement payment and your rights will be affected. If you do not want to be legally bound by the settlement, you must exclude yourself from it by July 12, 2022. Unless you exclude yourself, you will not be able to sue Founders for any claim made in this lawsuit or released by the Settlement Agreement. If you do not exclude yourself, you may object to the settlement or ask for permission for you or your lawyer to appear and speak at the hearing at your own cost. You do not have to appear at the hearing to secure your Settlement payment. Objections and requests to appear are due by July 12, 2022 and must be mailed to Morris v Founders Insurance, P.O. Box 25412, Santa Ana, CA, 92799. More details and the full terms of the Proposed Settlement can be found in the Notice of Class Action Lawsuit.