California Governor Gavin Newsom warned insurers of legal action for delaying or denying wildfire claims, as the state sues State Farm for mishandling claims from the Los Angeles fires. - State Farm faces up to $4 million in penalties and a possible one-year license suspension for approximately 400 violations found in an investigation of 220 cases.
- The January 2025 wildfire killed 31 people, destroyed 16,000 structures, and exposed residents to toxic smoke linked to health issues. - State Farm denies allegations, calling the lawsuit a politically motivated attack, and notes it paid $5.7 billion on 13,700 claims.
The investigation followed complaints from survivors about delays and denials, despite a December 2024 agreement to expand coverage in wildfire-prone areas.