Allstate Accused of Fraud in Amended Complaint with Old Slip Benefits

NEW YORK, Sept. 11, 2025 /PRNewswire/ -- James Lukezic, Managing Principal of Old Slip Benefits & Insurance Services, LLC ("Old Slip"), has filed suit against Allstate Insurance Company, alleging that the insurance giant acted in bad faith, misrepresented contractual terms, and unlawfully sought to force Lukezic to cede his independent financial services business 25 days into their franchise agreement. Most recently, fraud has been added to an amended compliant along with a new defendant, AFS (Allstate Financial Services) the insurance giants Broker Dealer.

What Old Slip Alleges Allstate Did

According to the lawsuit, Old Slip claims that:

1. Allstate pressured Lukezic to abandon his separate financial services business.
   After operations began in March 2024 under the Francise Agreement, an Allstate executive allegedly demanded that Lukezic cease offering financial services products outside of Allstate, give up his FINRA licenses, and transfer his investment advisory clients to an Allstate affiliate, AFS (Allstate Financial Services). Lukezic allegedly refused, saying these demands contradicted representations made under their contract and during the sales process where there was no communication regarding transferring FINRA licenses or working with Allstate in the securities business, only insurance. Justia Law+1
2. Allstate terminated the agency agreement, citing "unauthorized brokering"
   In a termination letter dated June 25, 2024, Allstate notified Old Slip that it was being terminated for maintaining an outside business interest which Allstate describes as unauthorized brokering. The termination was to take effect on September 30, 2024. In September 2024, Old Slip obtained a Temporary Restraining Order to halt the termination of the franchises which still operate today. Justia Law+1
3. FINRA
   On June 25^th, 2024, FINRA informed Lukezic's attorney that they have decided to investigate Lukezic for alleged trading errors on inherited accounts Lukezic had no control over or access over, the same day Allstate served Termination paperwork.
4. Legal Violations - Fraud
   The lawsuit asserts multiple causes of action, including breach of contract, breach of implied covenant of good faith and fair dealing, a claim under the New York Franchise Sales Act, unconscionability, tortious interference, and equitable estoppel. Most recently, Fraud was included as a cause of action in the recently filed Amended Complaint. Justia Law+1 Lukezic alleges that AFS (Allstate's Broker Dealer) organized a ruse to defraud Lukezic of his Financial Services clients at a time when only AFS was able to generate commissions as Allstate insurance had a freeze on new business in New York State.

Implications & What to Watch For

Should Old Slip prevail on any of its claims, the case could:

• Influence how insurance companies structure their franchise agreements, especially with agents who also run financial advisory or investment services businesses.
• Clarify what representations are enforceable in negotiations and the extent to which companies can demand agents abandon outside businesses.
• Affect practices relating to terminations "without cause".

Conclusion

Old Slip Benefits & Insurance Services claims that Allstate engaged in trying to defraud Lukezic of his Financial Services clients and made misrepresentations, engaged in bad faith conduct, and unlawful contract termination when Lukezic refused to surrender his separate financial services business. Allstate counters that it followed its contract and had the right to end the agency relationship. The legal proceedings are ongoing, and a final determination has not yet been made in court.

Contact: Peter king, [email protected]

SOURCE Old Slip Capital Partners