Former Allstate Adjuster Accuses Company of Wrongful Termination

Gravely & Pearson, L.L.P. Files $10 Million Lawsuit Against Allstate Insurance Whistleblower Case

SAN ANTONIO -- Gravely & Pearson, L.L.P., filed a lawsuit today in the Bexar County District Court against Allstate Insurance Company for wrongful termination and defamation of Fred Klecka, a former adjustor in Allstate's Special Investigation Unit (SIU) or Fraud Unit.

In July 2005, Klecka was fired by Allstate for refusing to commit an illegal act. The wrongful termination followed months of retaliation by Allstate management in the form of unfair assignments, unjust scrutiny and criticism of Klecka's work and the imposition of requirements that were not placed on other workers. The treatment was calculated to make Klecka quit. When Allstate realized Klecka would not quit, they fired him.

Klecka, having worked inside the elite Allstate Fraud Unit, was responsible for investigating and handling claims where there was a concern about fraud. In early 2003, Klecka discovered that an Allstate employee had not only issued an improper claim payment to a company that the employee owned and operated, but that the same individual was sharing in other improper claim payments in excess of a million dollars with an outside entity for work that was never done on hundreds of claim files.

The retaliation first began in 2004. After being interviewed by the United States Federal Bureau of Investigation (FBI), Klecka refused to comply with Allstate's illegal order that he not cooperate with the FBI in their investigation into Allstate's claim department or he would lose his job. Allstate feared that the FBI might uncover information in its investigation that could expose other employees and Allstate to criminal charges. Allstate also did not want the details of the improper claim payments to be disclosed to the hundreds of policyholders affected by the scheme.

Klecka's cooperation and assistance led to a fraud and embezzlement investigation by the FBI and the indictment, arrest and pending sentencing of the two parties responsible for the fraudulent scheme. Unfortunately, Klecka's cooperation with the FBI also led to his own wrongful termination for refusing to commit an illegal act. As a result of Allstate's illegal conduct, Klecka has suffered damages in the form of lost wages and benefits, emotional distress and mental anguish. The lawsuit alleges damages up to $10 million.

Representing the plaintiff, Gravely & Pearson, L.L.P. has demanded a trial by jury in an effort to recover actual damages and exemplary damages for Allstate's malicious conduct. "Mr. Klecka was fired for doing his job," said Matthew Pearson, one of Klecka's attorneys. "Fortunately, the law protects people like Mr. Klecka who had the courage to stand up to a powerful company like Allstate, risk his career, and do the right thing."

Gravely & Pearson, L.L.P., are trial attorneys that handle a broad range of civil actions including insurance and employment litigation.