LA County sues State Farm, alleging mishandled wildfire claims

Los Angeles County filed a lawsuit against State Farm alleging unfair competition and false advertising in how it handled Eaton and Palisades wildfire claims. Officials say hundreds of policyholders face delays, denials, or underpayments, leaving many survivors displaced and trying to rebuild months after the fires. The county seeks full records and documents from adjusters, while regulators pursue penalties and reviews that could affect State Farm's license. State Farm says it has cooperated with California authorities, has paid billions in claims, and closed a large share of them. Survivors and county leaders describe ongoing recovery disruptions tied to shifting adjusters and insufficient settlements. The litigation comes amid broader tensions between fire survivors' needs and insurer compliance expectations.