(Photo – Office of Sup. Kathryn Barger)
Los Angeles County leaders filed a lawsuit Monday, August 31, against State Farm, accusing the insurer of mishandling claims from survivors of the 2025 Eaton and Palisades fires.
By News Desk
The lawsuit alleges violations of California’s unfair competition and false advertising laws. County officials said survivors have reported delayed payments, changing adjusters, underpayments, partial settlements and difficulties obtaining compensation for smoke damage. Those problems have forced some families to extend costly temporary housing.
Supervisor Kathryn Barger said the county reviewed more than 500 complaints and documents submitted by policyholders. She said the claims process has compounded the trauma faced by wildfire survivors, particularly those whose homes remain standing but were severely damaged.
State Farm said it disagrees with the county’s allegations and will respond through the legal process. The insurer said it has paid more than $6.2 billion in fire-related claims, including about $1 billion for smoke damage, and that roughly 78% of claims have been closed.
The lawsuit follows separate legal action by California regulators, who are seeking millions of dollars in penalties over allegations that State Farm delayed investigations and underpaid claims.
It’s crazy that State Farm thinks that closing 78% of claims in 18 months is something to brag about. Shouldn’t all of the claims have been settled in less time than that?