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Lawsuit Claims Citizens Wrongly Awarded Contracts

By: Associated Press Email
By: Associated Press Email

TALLAHASSEE, Fla. (AP) -- A class-action lawsuit against Citizens Property Insurance Corporation says that the company improperly awarded dozens of no-bid contracts worth more than $49 million dollars.
The lawsuit filed Thursday, October 21st in Tallahassee seeks unspecified damages for the 1.2 million Citizens policyholders. The attorney who filed the complaint says the alleged mismanagement led to higher rates for policyholders.
Citizens Property Insurance is supposed to take competitive bids for all contracts above $25,000 except in emergencies or when there is only one vendor. The lawsuit says that since 2004, 33 contracts have violated those rules, but a statement by the insurance company said all contracts in question were properly awarded.
Florida's auditor general in 2006 also raised questions about
Citizens' contracting process.
No other information is availible at this time, but WCTV will continue to cover this story and bring you the latest on the lawsuit as it is availible.


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