State Farm faces a federal lawsuit alleging the use of discriminatory algorithms and unfair claims practices that allegedly targeted elderly, disabled Black homeowners in Alabama.
A newly filed complaint in the United States District Court for the Middle District of Alabama details sweeping allegations against the State Farm Insurance Company and its agent, Kris Stallworth. The plaintiffs, Gregory Kelly and Annette B. Kelly, both elderly and disabled residents of Montgomery, Alabama, claim State Farm subjected their insurance claims to heightened scrutiny because of their race and disabilities, resulting in delayed payments and financial hardship.
At the center of the lawsuit is the Kellys’ assertion that State Farm failed to make prompt payment for lightning and water damage to their home, totaling $372,437.36. The complaint alleges that State Farm’s Premier Service Program (SFPSP) contractors, including Servpro and HVACi, committed acts of gross negligence and breached contractual obligations by filing false engineering and environmental reports about the damage. The plaintiffs allege these actions led to delays in urgent home repairs and devalued their property…