CHICAGO (25 NEWS) - State Farm Insurance offered so-called “hush money” to settle discrimination claims from African-American and other minority employees, according to prominent civil rights attorney Ben Crump, who’s suing the Bloomington-based company on behalf of fired long-time worker.
Civil rights lawyer Crump says State Farm offered cash to settle discrimination complaints
Corporate conductAllegation
State Farm is accused of secretly cutting insurance payouts
Lawsuits accuse State Farm of secretly working to cut insurance payouts.
Lawsuits accuse State Farm of secretly working to cut insurance payouts
According to Drummond, the Oklahoma attorney general, State Farm has "secretly and fraudulently withheld from policyholders" information about coverage restrictions that the insurer applies internally when it assesses claims for hail damage.
Lawsuits accuse State Farm of secretly working to cut insurance payouts for hail damage : NPR
Corporate conductConfirmed
State Farm paid $422,000 to reimburse customers
State Farm paid approximately $422,000 including interest to reimburse affected customers.
Respondent State Farm shall, within 30 days of the entry of this Order, pay a civil money penalty in the amount of $211,000 to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3).
Among other things, in January 2024, State Farm paid approximately $422,000, including interest, to reimburse affected customers.
Corporate conductConfirmed
State Farm scraps gender identity project
State Farm scraps its gender identity project following backlash from the 'Like a Creepy Neighbor' campaign.
OKLAHOMA CITY (KFOR) — Documents concealed under a protective order for years are now public, and attorneys say they prove that State Farm was running a scheme that profited $1.4 billion through underpaying and denying wind and hail claims.
News 4 previously reported the lawsuit has become a point of contention between Attorney General Gentner Drummond—whose office is leading its own lawsuit against State Farm—and his opponent Mike Mazzei in the ongoing Republican runoff race for Oklahoma governor.
OKLAHOMA CITY (KFOR) — Documents concealed under a protective order for years are now public, and attorneys say they prove that State Farm was running a scheme that profited $1.4 billion through underpaying and denying wind and hail claims.
Oklahoma Attorney General Gentner Drummond sued State Farm in June, accusing it of running a “Denial Enterprise” under the state’s anti-racketeering statute.
On June 24, Oklahoma Attorney General Gentner Drummond (R) filed a lawsuit against State Farm alleging that the company fraudulently denied or underpaid claims to Oklahoma customers for damages caused by hail and wind.
State Farm secretly changed how it evaluated hail and wind roof claims starting in 2020, and internal documents show the move saved the company $1.4 billion in a single year.
OKLAHOMA CITY (KFOR) — Documents concealed under a protective order for years are now public, and attorneys say they prove that State Farm was running a scheme that profited $1.4 billion through underpaying and denying wind and hail claims.
The epicenter of the hail litigation appears to be Oklahoma, where more than 600 lawsuits were pending against State Farm as of this spring, according to a law firm handling some of the cases.
Lawsuits accuse State Farm of secretly working to cut insurance payouts for hail damage : NPR
Corporate conductConfirmed
State Farm drops thousands from policies
State Farm dropped thousands of households from their policies, forcing them onto California's FAIR plan.
State Farm notoriously dropped thousands of households from their policies, forcing them onto the California FAIR plan (which some took to calling the “un-FAIR plan”).
Corporate conductConfirmed
State Farm did not disclose fund restrictions
State Farm did not disclose in Form CRS that it limited mutual fund and 529 Plan options to specific classes.
These proceedings concern State Farm’s failure to comply with Regulation Best Interest (“Regulation BI”) between June 30, 2020 and August 2022 (the “relevant period”) in connection with State Farm’s recommendation that certain of its retail brokerage customers invest in State Farm’s qualified tuition program (the “State Farm 529 Savings Plan”), offered by the Nebraska Educational Savings Plan Trust, Nebraska’s state-sponsored tax-advantaged 529 tuition savings program, and certain mutual fund shares.
During the relevant period, State Farm did not disclose in Form CRS that it had limited its menu of mutual fund shares to Class A and Class P mutual fund shares or that it had limited its menu of 529 Plans to only the State Farm 529 Savings Plan.
Climate & energyAllegation
State Farm is accused of unfair claim handling
Los Angeles County alleges State Farm engaged in unfair business practices by mishandling insurance claims from policyholders affected by the January 2025 Eaton and Palisades Fires.
(AP) — California is seeking millions of dollars in penalties from State Farm after an investigation found the insurance company was slow to investigate and underpaid claims from the 2025 Los Angeles-area wildfires, regulators announced Monday.
(AP) — California’s top insurance regulator on Thursday launched an investigation into State Farm over the company’s handling of claims from the January Los Angeles-area wildfires.
This week, Insurance Commissioner Ricardo Lara announced that California was pursuing legal action against State Farm, including the possible temporary suspension of its license.
LOS ANGELES, CA — Los Angeles County has sued State Farm, alleging unfair business practices in the company’s handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades Fires.
When a 32-year veteran compliance officer cited State Farm for "shoddy" and "shameful" conduct, a State Farm lawyer complained, and the department reportedly stripped her of her caseload and cut her pay.
"State Farm has unjustly ignored this group of survivors, leaving them overwhelmed and frustrated," Barger said, noting the county's legal investigation into more than 500 complaints and documents provided by State Farm policyholders.
Los Angeles County files lawsuit against State Farm for allegedly mishandling wildfire survivor claims - CBS Los Angeles
The group Consumer Watchdog, on Thursday affirmed the county’s investigation into State Farm’s handling of January wildfire claims, calling it “a vital step to protect wildfire victims.” The group said it has received numerous complaints from consumers about insurers, including State Farm, underpaying homeowners or denying claims.
County opens probe into State Farm's handling of wildfire claims - Los Angeles Times
State Farm, the largest home insurer in California, continues to seek approval of a 22% emergency rate hike even as it faces complaints over its handling of insurance claims.
If granted, the inquiry would be a rare critical exam of the insurance department and how it has handled consumer complaints against State Farm and other insurers accused of denying and delaying wildfire claims.
Los Angeles County attorneys Thursday launched an investigation into State Farm over their handling of insurance claims filed by policyholders affected by January's wildfires following growing complaints from residents about delays, underpayments and denials of legitimate claims.
County Counsel stated that it has formally notified State Farm, the largest insurer in California, that if it is engaging in any unlawful or unfair business practices, the company must immediately stop such conduct and follow state laws.
The group Consumer Watchdog, on Thursday affirmed the county’s investigation into State Farm’s handling of January wildfire claims, calling it “a vital step to protect wildfire victims.” The group said it has received numerous complaints from consumers about insurers, including State Farm, underpaying homeowners or denying claims.
California regulators have taken the first steps to pursue legal action against State Farm, alleging the insurance company mishandled claims filed by survivors of the 2025 Los Angeles wildfires.
Corporate conductAllegation
State Farm acknowledged a number of alleged violations related to inconsistent claim decisions
In its response to regulators, State Farm acknowledged a number of alleged violations, but characterized them as "unintentional oversights" and "file-specific errors" committed by its claim handlers.
In its response to regulators, State Farm acknowledged a number of alleged violations, but characterized them as "unintentional oversights" and "file-specific errors" committed by its claim handlers.
State investigation alleges State Farm's wildfire response broke law 400 times
Media & the pressConfirmed
A court awarded $14.5 million to a roofing contractor who claimed State Farm defamed him
INDIANAPOLIS — The largest defamation verdict in Indiana history — more than $14.5 million awarded to a contractor who claimed State Farm Fire & Casualty ruined his business and reputation — has been upheld by the Indiana Court of Appeals.
INDIANAPOLIS — The largest defamation verdict in Indiana history — more than $14.5 million awarded to a contractor who claimed State Farm Fire & Casualty ruined his business and reputation — has been upheld by the Indiana Court of Appeals.