McGavick sued over Safeco payout

OLYMPIA – A Safeco Insurance Co. shareholder sued Republican U.S. Senate hopeful Mike McGavick on Tuesday, claiming the former executive’s $28 million payout for leaving the company was fraudulent and wasteful.

The claim resembles criticism from Washington state Democrats, who have filed a separate federal campaign complaint alleging that McGavick’s “golden parachute” amounted to an illegal campaign contribution.

McGavick has dismissed that complaint, and he rejected Tuesday’s lawsuit as a baseless political attack.

“These allegations regarding my compensation are without merit and obviously politically inspired. It is sad that my opponents insist on dragging Safeco into the mean-spirited political process,” McGavick said in a statement.

Safeco and its board members – including former Democratic Gov. Gary Locke – also are named as defendants in the lawsuit, filed in U.S. District Court in Seattle.

In a statement, Safeco downplayed the lawsuit and said McGavick’s pay was extensively reviewed by company officials and outside advisers.

The lawsuit was filed by Emma Schwartzman, 27, a former waitress now studying at the University of Washington. Schwartzman says her great-great-grandfather was a founder of General Insurance Co., a Safeco predecessor.