Texarkana, AR: (Aug-02-07) A series of class action lawsuits have been filed against Computer Sciences Corp., alleging that a colossal amount of insurance companies have used or currently use Computer Science's software program Colossus to engage in conspiracies to systematically undervalue bodily injury claim settlements. The suits claimed that the software was used as a cost containment tool that was used to enhance the insurance companies' profits at the expense of first party insured. Originating from the Government Insurance Office of Australia, Colossus was first licensed in the United States in early 1990. The Colossus program is currently licensed to more than 20 insurers. The suits alleged that the defendants indulged in civil conspiracy, breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment, and fraud. The original Miller County Colossus case was filed on Feb. 7, 2005, by the plaintiff Georgia Hensley, individually and as class representative.
State Farm, Nationwide, and Allstate have continued to seek protective orders concerning non-public personal information, such as personal financial or health information. In a settlement reached with General Casualty Company, Graphic Arts Mutual Insurance, Republic Franklin, Insurance and UTICA, American Central Insurance Company, Hartford Insurance, Clarendon America Insurance Company, Ohio Casualty Insurance Company, American Insurance Company and American Standard Insurance Company, sources claim that the payouts amount to more than $293 million. [LEGAL NEWSLINE: COLOSSUS SOFTWARE]
