EEOC DETERMINES ALLSTATE VIOLATED FEDERAL LAW
BY COUNTERSUING THE ROMERO I PLAINTIFFS
Washington, D.C. (December 19, 2002)
The United States Equal Employment Opportunity Commission has issued a written
determination that there is reason to believe that Allstate Insurance Company violated the Age Discrimination in Employment
Act, as amended ("ADEA"), by countersuing the 28 plaintiffs who filed the Romero I class action lawsuit against Allstate and its
president, chairman and chief executive officer, Edward M. Liddy.
According to the EEOC, Allstate has "failed to produce any convincing evidence" to support the allegations made in its
counterclaims for fraud, negligent misrepresentation, unjust enrichment and breach of duty of good faith.Central to the
determination is the fact that Allstate's purported justification for bringing its counterclaims is belied by statements made to the
Commission in May 2000 when responding to charges of discrimination concerning the lawfulness of the General Release and
Waiver Agreement (the "Release") that was presented to more than 6,400 employee agents as part of the "Preparing for the
Future" Group Reorganization Program.
Specifically, Allstate, through its attorneys at Sonnenschein, Nath & Rosenthal, told the EEOC that even if an employee agent
signed the Release, that individual would not be prevented from challenging its validity (that is, whether it was knowing and
voluntary or otherwise lawful) and pursuing a claim of discrimination. As the EEOC states in its determination letter, "the
conclusion is inescapable that [Allstate] filed its counterclaims to discourage other of its employees from pursuing employment
discrimination claims against it and to punish [the Romero I plaintiffs] for filing an age discrimination lawsuit against it." Having
determined that there is reason to believe that Allstate has once again violated the anti-retaliation provisions of the ADEA, the
EEOC is required to enter into a conciliation process in an attempt to remedy the practice determined to be unlawful. In the
event the conciliation process does not result in a resolution acceptable to the EEOC, the Commission has the ability to pursue a
legal remedy, including damages, in federal court.
The EEOC's determination comes some fourteen months after it first determined that the Release constituted unlawful retaliation,
coercion, intimidation and interference in violation of the ADEA, Title VII of the Civil Rights Act of 1964 and the Americans with
Disabilities Act. Following this determination, the EEOC filed a lawsuit against Allstate in the United States District Court for the
Eastern District of Pennsylvania on December 27, 2001, seeking to invalidate the Release and recovery of compensatory and
punitive damages.
The EEOC since has determined that Allstate again violated federal law in requiring its so-called "life specialists" to sign a similar
form of release. Further questions regarding the determination or the conciliation process should be addressed to the Kansas
City Area Office of the United States Equal Employment Opportunity Commission: (913) 551-5655. If you believe that
Allstate's counterclaims discouraged you or anyone else from filing a charge of discrimination against Allstate, or otherwise
pursuing a claim such as by filing an "opt-in" consent form, you are encouraged to contact the EEOC directly.
Discussion Forum
