A 26-year employee raised concerns — what allegedly came next could alarm HR leaders
A veteran Allstate attorney alleges the insurer repeatedly denied her promotions — and retaliated after she raised discrimination concerns with management and HR.
Catherine H. Costict, a Black woman who has worked as Senior Litigation Counsel in Allstate Insurance Company's Memphis office since 1999, filed a federal lawsuit on April 6, 2026, claiming the company passed her over for advancement for years in favor of less qualified white and/or male colleagues.
According to court filings in Costict v. Allstate Insurance Company (No. 2:26-cv-02381, W.D. Tenn.), Costict has received just one promotion in 26 years with the company — a 2008 move to Trial Counsel, now titled Senior Litigation Counsel. She has held that same position ever since.
Her track record, as laid out in the filing, is notable. Clients have consistently rated their satisfaction with her representation as "satisfied," "very satisfied," or "raised the bar." She received the Silver Medal Award in 2012 and the Distinguished Performance Award in 2014, described as the highest award given by the company to any attorney in the region.
Yet between 2016 and 2024, Costict alleges she applied for multiple positions — including Lead Counsel roles in Atlanta and a Corporate Litigation Counsel post — and was turned down each time. In each instance, she claims Allstate chose white and/or male attorneys with less experience and shorter tenure.
The part of the case that may resonate most with HR leaders is what allegedly happened after Costict spoke up. In 2023, she brought her concerns to Allstate's management and human resource department, raising the issue that less qualified white attorneys were being selected over her because of her race and/or sex.
What followed, according to the lawsuit, was a string of adverse actions. In 2024, Costict received a 0% merit increase for the first time in her entire career with the company. Allstate also attempted to place her on a performance improvement plan, which she protested as retaliatory. Then, in July 2024, the company removed her as its Relationship Manager to the National Bar Association — just two weeks before the organization's annual convention.
The filing also highlights a broader diversity gap. While the vast majority of attorneys in Costict's region are Black women, the regional leadership team includes none — instead comprising three white men, two white women, and one Black man.
Costict is seeking back pay, front pay, compensatory and punitive damages, and attorneys' fees across six counts of racial and sex discrimination and retaliation under federal and Tennessee state law. A jury trial has been demanded.
Allstate has not yet responded to the lawsuit, and no determination has been made on the merits of the claims.
