Class Action Accusing GEICO of Failing to Pay Full Value for Totaled Vehicles Certified in Texas

HOUSTON — A federal judge has certified a class action in which Texas policyholders accuse GEICO of failing to reimburse them the full value of their totaled vehicles by withholding fees and sales tax.

In a Nov. 30 order, Judge Keith P. Ellison of the U.S. District Court for the Southern District of Texas found plaintiffs meet the standards for adequacy, commonality and typicality.

The lead plaintiffs and the class members’ policies entitled them to the “replacement cost less depreciation” of their vehicles. They allege GEICO underpaid ACV by systematically withholding mandatory fees and sales tax for vehicles leased before …