Settlement Reached in Class Action Lawsuit Against New Jersey Manufacturers Insurance

ose is that the time of the total lossThe date of the lossThe year, make and model of the totaled leased vehiclePayout optionsPaper checkSettlement fund breakdownThe settlement fund covers:Settlement administration costs: To be determinedAttorneys’ fees: Up to $2,000,000Attorneys’ expenses: $21,000 (estimated)Service award to class representative: $5,000Payments to eligible class members: The remainder of the fundImportant datesDeadline for exclusion: Oct. 1, 2025Fairness hearing: Oct. 31, 2025Deadline to file a claim: Nov. 15, 2025When is the McCullough v. NJM payout date?The settlement administrator will issue payments approximately 120 days after the court grants final approval or the claims deadline, whichever is later.Why was this class action settlement filed?The class action lawsuit alleged New Jersey Manufacturers Insurance Co. breached certain auto insurance policies by underpaying sales taxes owed to insured lessees of leased vehicles when settling total loss claims. NJM denies these allegations, but the parties agreed to settle to avoid the uncertainties and expenses of continued litigation. In summary, consumers who leased a vehicle insured by New Jersey Manufacturers Insurance Co. and experienced a total loss between March 19, 2015, and Aug. 6, 2025, could be eligible to receive a cash payment for sales tax from a class action settlement. The settlement aims to compensate those who may have been underpaid sales tax amounts due to them during the resolution of total loss claims for their leased vehicles. To file a claim, individuals must meet specific criteria, submit requested information, and adhere to the deadlines outlined by the settlement administrator. By addressing these requirements, affected consumers can potentially receive compensation for the sales tax owed to them as part of this settlement.