Los Angeles County Sues State Farm Over Wildfire Claims

The Government of Los Angeles County filed a lawsuit in Los Angeles County Superior Court against State Farm General Insurance Co. and State Farm Mutual Automobile Insurance Co. The suit alleges the insurers delayed, denied, and underpaid property damage claims following the January 2025 Eaton and Palisades wildfires, which killed 31 people and caused roughly $40 billion in insured losses.

The legal action follows a county investigation launched in November. Officials claim State Farm ignored the probe by refusing to provide subpoenaed documents. Los Angeles County Supervisor Lindsey Horvath stated the company must live up to its commitment to be a "good neighbor" and do right by customers who have lost so much.

State Farm strongly disagrees with the county's characterization of its response. A company spokesperson noted that the insurer has paid over $6.2 billion on claims and closed approximately 78% of them. While the lawsuit does not specify a total compensation amount, county counsel indicated the final figure would be substantial.