LOS ANGELES COUNTY — The county announced that it filed the legal action against the state's largest insurance provider to address alleged misconduct following the disasters. The filing joins a separate enforcement effort by state regulators that targets similar practices but seeks different remedies for affected policyholders.

The lawsuit seeks injunctive relief, restitution for policyholders, civil penalties, and abatement for alleged ongoing health hazards associated with inadequate testing and remediation. County Counsel Dawyn Harrison stated the lawsuit alleges State Farm engaged in unfair, unlawful, and deceptive business practices that harm their policyholders.

LA County Supervisor Kathryn Barger said recovering from the wildfires has been especially difficult for families who still have their damaged homes. "Many of them have lamented that they wish their homes had burned," Barger said.

Barger noted the county’s legal investigation into more than 500 complaints and documents provided by State Farm policyholders as evidence. She stated that delays have led families to spend hundreds of dollars in temporary housing while waiting for resolution.

"Survivors have reported deep delays in processing claims and payments, repeated changes in adjustments, sometimes up to 10 to 15, underpayments and partial payments, inconsistent handling of additional living expenses and serious problems with smoke damage claims, Barger said. LA County Supervisor Lindsey Horvath said State Farm took the premiums and must now honor the policies without further runaround or unnecessary delays."

Wildfire survivors deserve support, clear answers, and a fair claims process, Farm said. The insurer stated that insurance practices in California are regulated by the California Department of Insurance and that the company cooperated fully with the Department’s review of their wildfire claims response.

Our focus remains on helping customers recover. State Farm has paid more than $6.2 billion on claims related to the 2025 Los Angeles wildfires, including approximately $1 billion for smoke-related damage, and has closed about 78% of claims," Farm said. The company stated it continues working directly with customers whose claims remain open and evaluating each claim based on the facts of the loss and the coverage provided by the customer’s policy."

Why It Matters

From January 7 to 31, 2025, 14 destructive wildfires affected the Los Angeles metropolitan area and San Diego County, killing at least 31 people and forcing more than 200,000 to evacuate. The fires destroyed more than 18,000 homes and structures and burned more than 57,529 acres of land, creating a massive volume of insurance claims that regulators say were mishandled.

The state Department of Insurance filed a lawsuit against State Farm in May that included similar allegations, though that state lawsuit does not seek restitution for policyholders, unlike the county lawsuit. California is pursuing legal action against State Farm, seeking millions in penalties for what regulators describe as widespread violations.

Timeline

In January 2025, the county alleges in its legal action that State Farm engaged in unfair business practices after the January 2025 wildfires in Altadena and Pacific Palisades. In May 2025, the state Department of Insurance filed a lawsuit against State Farm that included similar allegations.

The state’s suit was filed after an investigation found the insurance company didn’t immediately investigate and underpaid claims for the 2025 fires, according to regulators in May. On May 4, 2026, the California Department of Insurance conducted a Market Conduct Examination (MCE) of State Farm, which found 398 violations of the Unfair Insurance Practices Act and related regulations.

What's New

Los Angeles County filed a lawsuit against State Farm on Monday, alleging the insurer violated California's unfair competition and false advertising laws in its handling of claims from the 2025 Eaton and Palisades wildfires. The lawsuit was filed in Los Angeles County Superior Court, and the wildfires occurred in January 2025 in the Eaton and Palisades areas of Los Angeles County.

The MCE was completed by May 4, 2026, and the Department filed an Accusation and Order to Show Cause against State Farm, which is the first step toward a public hearing before an administrative law judge.

"Wildfire survivors have spent far too long fighting to receive the benefits they paid for and counted on," county Supervisor Kathryn Barger said at a downtown news conference announcing the legal action. Los Angeles County Supervisor Kathryn Barger stated that wildfire survivors have already endured unimaginable loss and should not have to fight their insurance company to receive the benefits they paid for.

State Farm said it 'strongly disagrees' with Los Angeles County's characterization of its wildfire claims response and will review the lawsuit and respond through the appropriate legal process. Gita Murthy is a State Farm policyholder who has not returned to her residence in Altadena.

How Sources Differ

Lindseyhorvath.lacounty.gov reports that Los Angeles County filed a lawsuit against State Farm on Monday, alleging the insurer violated California's unfair competition and false advertising laws. A State Farm corporate statement says the company has paid more than $6.2 billion on claims related to the 2025 Los Angeles wildfires, including approximately $1 billion for smoke-related damage, and has closed about 78% of claims.

Lindseyhorvath.lacounty.gov reports that Los Angeles County filed a lawsuit against State Farm on Monday. A State Farm corporate statement previously stated that it paid out more than $5.7 billion on 13,700 auto and home insurance claims related to the 2025 wildfires.

Insurance Commissioner Ricardo Lara said regulators found State Farm violated the law hundreds of times in the 220 cases that they investigated.

Insurance.ca.gov reports that the California Department of Insurance conducted a Market Conduct Examination (MCE) of State Farm, which found 398 violations.

The Los Angeles Superior Court complaint alleges that State Farm engaged in unfair business practices after the January 2025 wildfires in Altadena and Pacific Palisades.