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This website explains the Settlement, the Settlement Class, and your legal rights and options.
Please read its contents carefully.
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Plaintiffs sued Defendants in a class action lawsuit challenging their conduct in connection with collection of judgments against Plaintiffs arising out of Plaintiffs’ accidents with persons insured by State Farm. In particular, Plaintiffs contend that Defendants improperly pursued the suspension of their drivers’ licenses and others because at the time of their accidents they maintained the minimum required insurance required by Florida law. Pursuant to Fla. Stat. § 324.021(7) (2017 to date), the minimum insurance is:
(a) In the amount of $10,000 because of bodily injury to, or death of, one person in any one crash;
(b) Subject to such limits for one person, in the amount of $20,000 because of bodily injury to, or death of, two or more persons in any one crash;
(c) In the amount of $10,000 because of injury to, or destruction of, property of others in any one crash; and
(d) With respect to commercial motor vehicles and nonpublic sector buses, in the amounts specified in §§ 627.7415 and 627.742, respectively. See Fla. Stat. § 324.021(7).
Plaintiffs brought the following claims against the Defendants on behalf of the Settlement Class: violation of the Florida Consumer Collections Practices Act; common law conversion; aiding and abetting conversion; economic duress; violation of the federal RICO Act (18 U.S.C. § 1962(c)); violation of the federal RICO Act (18 U.S.C. § 1962(d)); abuse of process; unjust enrichment; and declaratory relief.
Defendants have denied all material allegations asserted in the Action and maintain that they acted in accordance with all applicable laws.
Settlement Class Member Options
If you are a Settlement Class Member, you have a right to stay in the case as a Settlement Class Member, or you can choose to be excluded from the case.
Option 1. Do Nothing Now. Stay in the Action and Receive an Initial Settlement Payment of $1,500 and the Opportunity to Submit a Claim for Additional Cash Relief
You have the right to stay in this Action as a Settlement Class Member and wait for final approval of the Settlement. You do not need to do anything if you wish to remain in this case. It will cost you nothing. If you do nothing, and after the Settlement is finally approved, you will automatically receive an Initial Payment in the amount of $1,500.00. With that payment, you will also receive a Claim Form that you can submit in the event that you believe that you have additional damages and want to pursue a Claim for Payment of Additional Relief. If you decide to stay in the case as a Settlement Class Member, you will be bound by all orders and judgments of the Court with regard to the Settlement Class.
Option 2. Exclude yourself from the Action.
You have the right to not be part of this Action by excluding yourself or “opting out” of the Settlement Class. If you exclude yourself, you will not receive an Initial Payment of $1,500.00 and you will not have the ability to make a Claim for Payment of Additional Relief. However, you will maintain your legal right to sue Defendants in a separate lawsuit at your own expense.
If you wish to be excluded from the Settlement Class, you must send a written request for exclusion to: Sanchez v State Farm c/o Settlement Administrator, P.O. Box 23650, Jacksonville, FL 32241. All requests for exclusion must be postmarked on or before AUGUST 12, 2025. See FAQ 8 for further instructions to exclude.
The Proposed Settlement
After extensive negotiations, the Parties have agreed to settle the case. Under the Proposed Settlement, Defendants have agreed to send cash payments to all Settlement Class Members who do not exclude themselves from the Settlement Class in the amount of One Thousand, Five Hundred Dollars ($1,500.00) (the “Initial Payments”).
With an Initial Payment, Settlement Class Members who do not exclude themselves from the Settlement Class will be provided a Claim Form and the opportunity to submit a claim for additional monetary relief (a “Claim for Payment of Additional Relief”). Only timely and complete Claim Forms submitted by or before the Claims Submission Deadline may be considered for payment on a Claim for Payment of Additional Relief. Any awards on such Claims for Payment of Additional Relief shall be determined by a Special Master selected by the Parties and approved by the Court.
Defendants have agreed to fund the Settlement up to the amount of Four Million Sixteen Thousand Five Hundred Dollars ($4,016,500.00). Funding for Claims for Payment of Additional Relief shall be paid out of any funds remaining after the payment of the Initial Payments, Service Awards to the Plaintiffs, Plaintiffs’ attorneys’ fees and costs, and the administrative costs of the Settlement. If the monetary total of all Claims for Payment of Additional Relief approved by the Special Master exceeds the funding amounts remaining after the payment of the Initial Payments, Plaintiffs’ attorneys’ fees and costs, the Service Awards to the Plaintiffs, and any administrative costs, the approved Claims for Payment of Additional Relief shall be adjusted on a pro rata basis out of the funds available.
As part of the Agreement, Defendants have agreed not to seek the suspension of the driver’s licenses of any class members in connection with any judgment amounts that may still be owed. However, this Settlement does not cancel or settle any judgment amounts that may still be owed; and Defendants are entitled to pursue all other viable methods to recover those amounts. In addition, Defendants also agree not to seek the suspension of any debtor’s driver’s license pursuant to Chapter 324 of the Florida Statutes if the judgment debtor maintained the minimum insurance required pursuant to Fla. Stat. § 324.021(7) at the time of the accident with a State Farm insured giving rise to a State Farm Judgment and such person (or their automobile insurer) tenders such funds to State Farm or its counsel in full or partial satisfaction of the debt owing to State Farm.
While the Court has preliminarily approved the Settlement, it has not yet finally approved the Settlement. No payments will be issued until after the Court has finally approved the Settlement and entered a Final Order and Judgment.
If the Settlement is not finally approved by the Court, no payments will be issued and the Parties and the members of the Settlement Class will be returned to the status quo as it existed on January 15, 2025
Drivers License Reinstatement
If you are a class member, you may have already had your driver’s license reinstated if your suspension was solely related to the Defendants’ requests for suspension. If your driver’s license was suspended for any other reason, then it may still be suspended. You can confirm the status of your driver’s license through the online DMV Portal at: https://mydmvportal.flhsmv.gov .
Removal of SR22 Insurance Obligations
SR22 insurance provides the DMV with a certificate of your financial responsibility with respect to car insurance. As a result of your driver’s license suspension, you may have paid or are currently paying for SR22 insurance. In addition to the monetary relief described below, any SR22 insurance requirements that arose due to Defendants’ requests for suspension should have already been removed from your DMV record. You can contact the DMV to confirm you are no longer required to carry SR22 insurance and, if you are paying such premiums and are not required to pay such premiums, you may cancel the SR22 portion of your insurance. If you previously paid for SR22 insurance as result of Defendants’ suspension requests, you may seek reimbursement of that portion of those expenses through this Settlement.