State Farm $4M Fla. Driver’s License Suspension Settlement

Florida residents who had their driver’s license suspended due to a judgment State Farm obtained after an accident may qualify to receive $1,500 or more from a class action settlement.

State Farm Mutual Automobile Insurance Co. agreed to pay $4,016,500 to settle a class action lawsuit. The lawsuit alleged State Farm, along with Hiday & Ricke P.A. and Jeff Ricke, improperly sought driver’s license suspensions from individuals who already carried the minimum insurance required by Florida law at the time of their accidents.

Who can receive a State Farm payout?

Class members must meet the following criteria:

• They were a judgment debtor of State Farm between April 7, 2017, and June 11, 2024, due to a judgment State Farm obtained.
• The judgment resulted from an automobile accident involving a driver insured by State Farm.
• At the time of the accident, they maintained at least the minimum insurance required by Florida law (Fla. Stat. § 324.021(7)), which is:
• $10,000 for bodily injury or death of one person in any one crash
• $20,000 for bodily injury or death of two or more persons in any one crash
• $10,000 for injury to or destruction of property of others in any one crash

• They or their automobile insurer made a payment to State Farm.
• Their driver’s license was suspended between April 7, 2017, and June 11, 2024, as a result of a request by Hiday & Ricke based on their failure to satisfy the State Farm judgment.
• Their license was not suspended for any reason other than the Hiday & Ricke request related to the State Farm judgment.

The settlement class is limited to 441 individuals identified by Hiday & Ricke’s records.

How much is the driver's license suspension payout?

Each class member who does not exclude themselves from the settlement will automatically receive an initial payment of $1,500.

In addition to this payment, class members will receive a claim form. Those who paid additional expenses due to their license suspension (such as paying for SR22 insurance) can submit a claim for further compensation, which will be paid from any remaining funds after all initial payments, service awards, attorneys’ fees and administrative costs.

No initial claim form required

Class members do not need to file a claim to receive the $1,500 payment. They will automatically receive it after the court grants final approval of the settlement. The settlement administrator already has the information needed to identify class members.

Those who wish to seek additional compensation for extra costs will need to submit a claim form that will be provided along with the $1,500 payment. The claim form will explain how to request additional relief

$4 million State Farm settlement fund breakdown

The $4,016,500 settlement fund includes:

• Settlement administrative costs: To be determined
• Attorneys’ fees: Up to $1,500,000
• Attorneys' costs: Up to $100,000
• Service awards to plaintiffs: $10,000 each
• Initial payments to eligible class members: $1,500 to each of the 441 class members (totaling $661,500)
• Any remaining funds: Used to pay additional relief claims

Important dates

• Exclusion deadline: Aug. 12, 2025
• Final fairness hearing: Aug. 26, 2025

When is the Sanchez v. State Farm Mutual Automobile Insurance Co. payout date?

Payments will be issued approximately 90 days after final approval.

Why was there a class action settlement?

The class action alleged State Farm and its attorneys improperly sought driver’s license suspensions from individuals who had already met Florida’s minimum insurance requirements at the time of their accidents. The plaintiffs claimed this violated several consumer protection and collection laws, including the Florida Consumer Collections Practices Act and the federal RICO Act.

State Farm and the other defendants denied wrongdoing but agreed to settle to resolve the dispute and avoid further litigation.

Sources

1. Class notice
2. Settlement agreement