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 For Immediate Release
Sep 9, 1997 Contact: Press Office
202-646-5172
STATE FARM ADMITS LIABILITY, STOPS PAYMENT OF CLINTON’S LEGAL FEES IN PAULA JONES CASE

JUDICIAL WATCH WINS VICTORY FOR POLICYHOLDERS AND WILL CONTINUE TO SEEK REFUND OF PREVIOUSLY PAID FUNDS


In its lawsuit against State Farm Insurance Co. for paying President Clinton’s legal fees in the Paula Jones sexual harassment matter, Judicial Watch won a major victory yesterday. State Farm, no doubt due to pressure from Judicial Watch on behalf of State Farm policyholders, announced yesterday it would no longer be paying President Clinton’s legal fees.

State Farm falsely justified their initial payments of Clinton’s legal defense in the Jones matter on the basis of defending him against defamation. However, the defamation claim occurred in large part because of the statements of Clinton’s $475 an hour Washington lawyer, Bob Bennett. Moreover, State Farm could have avoided any excuse, however manufactured, to make payments to Clinton by simply making a motion to dismiss the defamation count years ago. Instead, State Farm and Bennett made politically based decisions to delay the case until after the 1996 elections -- preventing Paula Jones her day in court and costing State Farm policyholders millions of dollars -- instead of decisions based on the law. It is for these reasons that Judicial Watch will continue its lawsuit on behalf of State Farm policyholders until the millions of dollars paid thus far are refunded.

Judicial Watch Chairman and General Counsel Larry Klayman stated: "State Farm’s capitulation shows that its unlawful payments to Bill Clinton were simply an attempt to purchase influence with the Administration. Now that it is under Court scrutiny, State Farm has bailed out at the earliest opportunity."

Judicial Watch is the ethical and legal watchdog group that uncovered John Huang and the campaign finance scandal. Larry Klayman is providing in depth analysis for NET’s gavel to gavel coverage of the Senate Governmental Affairs Committee hearings on campaign finance.



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