Suit seeks restitution and penalties; follows state insurance department findings of hundreds of violations.
Los Angeles County has sued State Farm, alleging the insurer engaged in unfair business practices while handling homeowners insurance claims from the January 2025 Eaton and Palisades fires.
The lawsuit, filed by County Counsel on behalf of the People of the State of California, accuses State Farm of unreasonable delays, systematic underpayments, frequent reassignment of adjusters, barriers to communicating with claims staff, inadequate payment of additional living expenses, and suppression of smoke-damage claims. It also alleges that State Farm’s advertising misled consumers about the coverage and claims service they would receive…