A federal judge in San Antonio moved a settlement on alleged racial discrimination by Allstate Corp. one step closer to reality Wednesday.
The judgment by U.S. District Judge Fred Biery allows a June settlement to proceed, with Allstate paying monetary relief of $50 to $150 to minorities who could have been denied coverage under unfair credit scoring methods.
Biery also approved fees and expenses of $11.72 million for plaintiffs' lawyers over the objections of some defense lawyers.
It is still unknown how much Allstate will have to pay in the class-action settlement, and the judge may have to withhold his final ruling for months if there are additional objections. That could delay the process of paying Hispanics and African Americans who were denied coverage or paid more because of the credit scoring policies.
Allstate already has begun implementing changes in its credit scoring in states where it was used to determine the risk of potential customers, said Allstate spokesman Michael Treviņo. The changes are part of the settlement .
But Treviņo said that while the company is pleased with the outcome of the settlement and the judge's approval this week, the company doesn't know how much it is likely to cost them.
"We're still accepting claim forms, so that part is not completed," Treviņo said.
Plaintiffs' lawyers from the three lead firms in the case, however, are celebrating their own fortune with the judge's approval of their fees.
All told, dozens of lawyers worked about 15,652 hours on the cases and the ensuing class action over the course of five years, according to filings with the court.
"It's been a long, long road," said Christa Collins, a lawyer with a Tampa, Fla.-based law firm representing some of the plaintiffs. "We achieved something that will affect the lives of minorities in a positive way."
Express-News Staff Writer Guillermo Contreras contributed to this report.