The company has paid a $20 million settlement to settle charges that it concealed data about claims from customers and covered up a collapse of its auto insurance business, according to court documents filed in federal court in New York.
The settlement, announced Thursday, resolves a class action lawsuit filed in November by former Encore customers who claimed they were harmed by the company’s failure to provide them with comprehensive coverage.
The lawsuit alleged that the insurance company hid the true costs of claims and misrepresented the amount of money a insured person could receive.
It was settled on Feb. 2, the documents said.
The terms of the settlement weren’t disclosed.
Encore said it was “deeply sorry for any embarrassment this issue has caused,” according to a statement.
The insurer did not immediately respond to a request for comment.
In January, Encore said that it would pay out more than $200 million to customers who had purchased Encore coverage through its insurance exchange through an exchange-based marketplace, but it has since stopped doing so.