Los Angeles County sues State Farm over alleged mishandling of Palisades, Eaton Fire claims

By Judy Abel · Mon Sep 07 2026

Another major lawsuit has been filed against State Farm Insurance in connection with the Palisades Fire. Now the County of Los Angeles has taken legal action against parent company State Farm General Insurance over the handling of claims from the January 2025 wildfires with a civil claim. Earlier this year the State of California also filed a lawsuit against the insurer as an administrative enforcement action by the California Department of Insurance. 

The county action alleges illegal and deceptive practices that delayed, denied, and underpaid claims for victims of the Palisades and Eaton wildfires. County investigators also claim the insurer systematically underpaid and suppressed smoke damage claims for toxin testing and remediation.

The county claims State Farm engaged in illegal and deceptive business practices that have kept fire victims from receiving their full benefits under their policies and from moving forward. County officials cited hundreds of complaints charging State Farm with unreasonable delays and “systemic underpayments.”

State Farm, California’s largest home insurer says it has paid out more than $6.2 billion in claims and has settled 78% of claims from the January 2025 fires. A company spokesperson stated, "State Farm General strongly disagrees with Los Angeles County’s characterization of our wildfire claims response.” 

Third District Supervisor Lindsey Horvath who represents Palisades Fire affected homeowners in Malibu wrote in her newsletter, “We tried this the nice way, but LA County isn’t afraid to do this the hard way if it brings justice to our survivors.”

Los Angeles County supervisors held a press conference last Monday to announce the lawsuit against State Farm over its handling of claims related to the Palisades and Eaton fires.

Read the full report in this week’s paper, Sept. 10.