Plaintiffs Allege Insurance Giant Misused State Authority in Debt Collection Scheme

U.S. District Court for the Western District of Louisiana
U.S. District Court for the Western District of Louisiana
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A class action lawsuit has been filed against a major insurance company and its associated debt collectors, alleging misuse of state authority to extort payments from Louisiana drivers. The complaint was lodged by plaintiffs Ariel Lee, Eric Mayshack, and Erica Mayshack in the United States District Court for the Western District of Louisiana on October 22, 2025. They accuse State Farm Mutual Automobile Insurance Company and its partners, T.L. Thompson & Associates, Inc., and Wilber and Associates, P.C., of illegally threatening or causing the suspension of driver’s licenses to force payment.

The plaintiffs argue that these companies have manipulated Louisiana’s Safety Responsibility Law to suspend or threaten suspension of driver’s licenses without due process. According to the complaint, this scheme involves falsely claiming that individuals are at fault for accidents without any judicial finding or adjudication. For instance, Ariel Lee was involved in an accident on April 15, 2024, but despite no official fault determination, her license was suspended following a letter from T.L., acting on behalf of State Farm. Similarly, Eric Mayshack received a notice from Wilber demanding payment under threat of license suspension for an incident he wasn’t directly involved in as a driver.

The plaintiffs assert that these actions violate their constitutional rights under both federal and state law. They allege that State Farm and its debt collectors act as state actors by leveraging the Department of Public Safety’s authority to enforce these suspensions mechanically based on private claims. This lack of due process is claimed to be unconstitutional under the Fourteenth Amendment and parallel provisions in the Louisiana Constitution.

In seeking relief from the court, the plaintiffs demand class certification for all affected individuals since October 2015 who have faced similar threats or suspensions orchestrated by these defendants. They request injunctive relief to stop further misuse of state statutes for debt collection purposes and seek reinstatement of suspended licenses pending proper legal procedures. Additionally, they are pursuing damages for economic harm suffered due to these practices and restitution for unjust enrichment obtained by the defendants through this alleged scheme.

Representing the plaintiffs are attorneys Charles E. Tabor from Shreveport and Joseph A. Gregorio from Bossier City. The case is identified as Case No.: 5:25-cv-01587 with jurisdiction established under various U.S.C sections including claims under RICO Act violations.

Source: 525cv01587_Mayshack_v_State_Farm_Mutual_Automobile_Complaint_Western_District_Louisiana.pdf



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