State Farm sued by Los Angeles County over wildfire claims

Los Angeles County has filed a lawsuit against State Farm, alleging the insurer mishandled claims following the destructive 2025 wildfires in areas such as Pacific Palisades and Altadena. The legal action claims the company violated California’s competition and false advertising laws by delaying payouts, denying valid claims, and making misrepresentations to discourage policyholders from pursuing benefits.

The lawsuit specifically alleges that State Farm failed to issue payments for living expenses, mishandled smoke damage claims, and assigned multiple adjusters to victims, which prolonged the recovery process. Los Angeles County Supervisor Kathryn Barger stated that wildfire survivors have spent far too long fighting for the benefits they paid for and expected.

This county-level action follows separate legal proceedings initiated by the state of California. The state is seeking millions of dollars in penalties and the potential suspension of State Farm’s license to operate in California for up to one year. While the state seeks penalties, the county lawsuit specifically seeks restitution for the victims. State Farm has stated it has paid out more than $6 million in claims and expects that figure to exceed $7 million.