8th Cir. Says State Farm Must Pay $4.5 Million in Prejudgment Interest to Class Action Plaintiffs

ST. LOUIS — A federal appellate court has affirmed that State Farm Life Insurance Co. must pay $4.5 million in prejudgment interest stemming from a class action accusing it of charging policyholders excessive fees on their life insurance policies.

In a Dec. 8 opinion, the 8th Circuit U.S. Court of Appeals stood by its previous ruling in which it ruled that the class is entitled to prejudgment interest at the 4 percent rate contained in the policies.

Michael Vogt is the named plaintiff for a 25,000-member class who alleged breach of contract and conversion claims against State Farm related to …