SAN FRANCISCO--(BUSINESS WIRE)--May 3, 2005--Rudy, Exelrod & Zieff, LLP; Lieff Cabraser Heimann & Bernstein, LLP; Lewis Feinberg Renaker & Jackson, P.C.; and Stoll, Stoll, Berne, Lokting & Shlachter, P.C. announce today that judgments totaling $52,498,388 have been entered in the United States District Court for the District of Oregon against Farmers Insurance Exchange for failing to pay overtime wages to its claims representatives up through April 2003.

The recent court victories for claims representatives outside of California are in addition to the landmark $210 million judgment against Farmers Insurance Exchange in Bell v. Farmers Insurance Exchange, Case No. 774013-0 (Cal. Supr. Ct.), for failing to pay its California insurance adjusters overtime pay from 1993 through June 2001.

"The Farmers litigation has sent an emphatic message to the entire insurance industry," stated Steven G. Zieff, a partner with Rudy, Exelrod & Zieff. "We are gratified that our suits have compelled Farmers to change its overtime pay practices."

"Claims Representatives will now be paid what they are owed for the long hours they worked," added Lieff Cabraser Heimann & Bernstein, LLP partner James M. Finberg.

"We believe these are the largest judgments ever entered as the result of the trial of a Fair Labor Standards Act case," Finberg noted.

Background on the Federal Suit

In the liability phase of the federal suit, entitled In Re Farmers Insurance Exchange Claims Representatives' Overtime Pay Litigation, MDL No. 1439 (D. Or.), U.S. District Court Judge Robert E. Jones in November 2003 held that Farmers' claims adjusters who handle auto and low level property claims are entitled to overtime under the Federal Fair Labor Standards Act ("FLSA") and the laws of seven states. Judge Jones further found that Farmers' actions were willful and were not taken in good faith, entitling plaintiffs to seek double damages on the lost overtime wages during the damages phase of the trial.

Following the liability phase trial, Judge Jones appointed former Oregon Supreme Court Justice Edwin J. Peterson as the Special Master to oversee the damages phase of the litigation. On January 27, 2005, a judgment was entered on behalf of the Minnesota class in the amount of $3,933,068.66. On May 2, 2005, a judgment was entered on behalf of the FLSA collective action members, and the Illinois, New Mexico, Colorado, Washington, Oregon, and Michigan classes in the amount of $48,565,320.54.

New Farmers Overtime Lawsuit Filed

A group of Farmers personal lines claims representatives recently filed a new class action lawsuit in Federal court in Los Angeles against Farmers seeking unpaid overtime damages under the FLSA and state overtime laws. Entitled Balliet v. Farmers Insurance Exchange, Case No. CV 04-09148 TJH (C.D. Cal.), the suit is on behalf of personal lines claims representatives who are or were employed by Farmers (1) in states other than California, Colorado, Illinois, Michigan, Minnesota, New Mexico, Oregon, or Washington, and (2) who did not opt into the current Farmers' case in Oregon federal court; or (3) who worked for Farmers after April 2003.

Farmers claims representatives who believe they may be eligible to participate in this lawsuit and want more information, may contact class counsel at 1-866-854-8550 or by email at info@farmersovertime.com.

About Rudy, Exelrod & Zieff

Rudy, Exelrod & Zieff, LLP, specializes in the representation of workers and employees in state and federal courts. Rudy, Exelrod & Zieff has long been a leading firm in the area of class action overtime cases and has handled numerous multi-million dollar overtime cases, including Bell v. Farmers Insurance Exchange, in which the firm obtained the largest overtime verdict in United States legal history.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, is a 65-plus attorney law firm with offices in San Francisco, New York, Washington, D.C., Beverly Hills and Nashville. Since 1972, Lieff Cabraser has successfully represented plaintiffs in a wide range of class action cases, including employment, wage and hour and pension benefits litigation. Since 1992, Lieff Cabraser has litigated 23 separate cases in which $100 million or more in jury verdicts were rendered or settlements were reached, including 11 cases valued at $1 billion or more each. The lead Lieff Cabraser Heimann & Bernstein, LLP lawyer litigating the case, James M. Finberg, is President of the Bar Association of San Francisco.

About Lewis Feinberg Renaker & Jackson

Lewis Feinberg Renaker & Jackson, P.C., is based in Oakland. For over two decades, Lewis Feinberg has represented plaintiffs in pension and other employee benefits litigation throughout the U.S., and has successfully litigated dozens of class action cases on behalf of employees.

About Stoll Stoll Berne Lokting & Shlachter

Stoll Stoll Berne Lokting & Shlachter, P.C. is a Portland, Oregon based firm with extensive class action experience.