LA County Sues State Farm Over 2025 Wildfire Claim Handling

LA County sued State Farm General on August 31, alleging unfair, unlawful, and deceptive claims practices involving Eaton and Palisades fire survivors, including unreasonable delays, underpayments, adjuster turnover, communication barriers, ALE disputes, and improper handling of smoke-damage claims. The County says its investigation relied in part on policyholder information and materials from Every Fire Survivor’s Network, Department of Angels, and EFRU, and is seeking restitution, injunctive relief, and civil penalties. State Farm disputes the allegations, saying it has paid more than $6.2 billion on claims from the two fires, including roughly $1B for smoke-related damage, and has closed about 78% of claims. The allegations remain pending and are not findings of liability, and the lawsuit is separate from state regulatory action against the insurer.

Action: Review LA County's announcement and case materials.

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