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 conductAllegationAgainst
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
LGBTQ+ policiesConfirmedYou decide
State Farm to offer benefits to same-sex partners
State Farm plans to offer benefits to same-sex partners.
State Farm Insurance announced last Friday that it will begin extending healthcare and other benefits to the same-sex partners of its employees, according to an Associated Press report.
Corporate conductConfirmedAgainst
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.
Workplace equityConfirmedYou decide
State Farm supports LGBTQ+ books in schools
State Farm supports a program to place LGBTQ-supportive books in schools, libraries, and community centers.
(TND) — Insurance giant State Farm abandoned its new initiative to distribute “LGBTQ+ books” to Florida classrooms, libraries, and community centers following media reports covering the company’s efforts.
On Monday news broke that State Farm, the insurance giant, had been supporting a program designed to put LGBTQ-supportive books into schools, libraries, and community centers.
Insurance company State Farm has dropped its support for a program providing LGBTQ-theme children’s books to teachers and libraries after a right-wing uproar.
Corporate conductConfirmedAgainst
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 conductConfirmedAgainst
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 conductConfirmedAgainst
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 & energyAllegationAgainst
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 conductAllegationAgainst
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 pressConfirmedAgainst
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.
AI & automationConfirmedAgainst
State Farm announces AI-driven agent contract changes
State Farm announced plans to replace contracts for its 19,000 independent contractor agents, requiring those remaining past 2027 to sign new agreements cutting pay and benefits and mandating AI tool use.
State Farm announced plans to replace existing contracts for its roughly 19,000 independent contractor agents, requiring those who want to remain past 2027 to sign new compensation agreements that cut pay and benefits while mandating the use of AI tools.
Climate & energyOfficial statementYou decide
State Farm held at least $30.9 billion in fossil-fuel-related investments as of 2019
According to California’s Department of Insurance, State Farm held at least $30.9 billion in fossil-fuel-related investments as of 2019—the most of any insurance provider in the United States.17 Given these concerns, we respectfully request that State Firm provide responses to the following requests for information by no later than June 16, 2023: 1.
According to California’s Department of Insurance, State Farm held at least $30.9 billion in fossil-fuel-related investments as of 2019—the most of any insurance provider in the United States.17 Given these concerns, we respectfully request that State Firm provide responses to the following requests for information by no later than June 16, 2023: 1.
Political spendingConfirmedYou decide
State Farm gave $417K to 527 organizations
State Farm donated $417,000 to Section 527 organizations including Republican and Democratic groups during 2011-2012.
In the 2011-2012 cycle State Farm gave $417,000 to Section 527 organizations, including $140,000 to the Republican State Leadership Committee; $110,000 to the Republican Governors Association; $105,000 to the Democratic Governors Association; $50,000 to the Democratic Attorneys General Association; and $12,000 to the Democratic Leadership Campaign Committee.
Workplace equityConfirmedAgainst
State Farm retaliated by terminating employee
State Farm retaliated by terminating an employee after they asked questions about their pay.
Instead of answering the worker’s questions about their pay, Marc Davis State Farm retaliated by terminating their employment.
Privacy & surveillanceRulingAgainst
Judge finds State Farm violated consumer protection laws
Judge ruled State Farm violated the Fair Credit Reporting Act and Consumer Financial Protection Act by furnishing inaccurate consumer credit information to credit-reporting agencies without proper notice or correction.
As described in the consent order, the Bureau found that State Farm Bank violated the Fair Credit Reporting Act, Regulation V, and the Consumer Financial Protection Act of 2010 by obtaining consumer reports without a permissible purpose; furnishing to credit-reporting agencies (CRAs) information about consumers’ credit that the bank knew or had reasonable cause to believe was inaccurate; failing to promptly update or correct information furnished to CRAs; furnishing information to CRAs without providing notice that the information was disputed by the consumer; and failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs.
Under the terms of the consent order, State Farm Bank must not violate the Fair Credit Reporting Act or Regulation V and must implement and maintain reasonable written policies, procedures, and processes to address the practices at issue in the consent order and prevent future violations.
As described in the consent order, the Bureau found that State Farm Bank violated the Fair Credit Reporting Act, Regulation V, and the Consumer Financial Protection Act of 2010 by obtaining consumer reports without a permissible purpose; furnishing to credit-reporting agencies (CRAs) information about consumers’ credit that the bank knew or had reasonable cause to believe was inaccurate; failing to promptly update or correct information furnished to CRAs; furnishing information to CRAs without providing notice that the information was disputed by the consumer; and failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs.
Under the terms of the consent order, State Farm Bank must not violate the Fair Credit Reporting Act or Regulation V and must implement and maintain reasonable written policies, procedures, and processes to address the practices at issue in the consent order and prevent future violations.
Privacy & surveillanceConfirmedAgainst
State Farm initiates data breach investigation
State Farm initiated an investigation after becoming aware of unauthorized online access to customer accounts.
What Happened Recently, State Farm became aware that an unauthorized online enablement to your accounts on statefarm.com had occurred. We initiated an investigation to determine the extent of the unauthorized activity.
Corporate conductAllegationAgainst
State Farm is accused of willful violation of state law
State Farm is accused of willful violation of state law, with a maximum penalty of $4 million if found willful.
The maximum penalty amount allowed by law would be around $4 million if State Farm is found to be “willful” in violating state law.
LA files lawsuit against State Farm over wildfire insurance claims
Corporate conductRulingAgainst
Cori and Kerri Rigsby sued State Farm Fire
Cori and Kerri Rigsby sued State Farm Fire & Casualty Company under the False Claims Act (“FCA”), alleging that State Farm defrauded the federal government while paying out claims related to the damage caused by Hurricane Katrina.
At a bellwether trial, the jury found that wind alone had damaged the property at issue and that State Farm submitted a false record that defrauded the government of $250,000.
Cori and Kerri Rigsby sued State Farm Fire & Casualty Company under the False Claims Act (“FCA”), alleging that State Farm defrauded the federal government while paying out claims related to the damage caused by Hurricane Katrina.