“This is very good news for our people, for our plaintiffs, because we’re going to be able to go ahead now with our antitrust claims in both cases,” said Bob Ruyak, an attorney for the homeowners.
A Los Angeles-based judge has denied a petition by State Farm and other insurance companies to dismiss two lawsuits accusing them of colluding to drive homeowners onto California’s FAIR Plan.
According to The Los Angeles Times, the lawsuits accuse State Farm and its co-defendants of violating California’s antitrust and unfair competition laws. In a Thursday decision, Los Angeles County Superior Court Judge Samantha Jessner ruled against the insurance bloc, saying the lawsuits may proceed for the time being.
“This is very good news for our people, for our plaintiffs, because we’re going to be able to go ahead now with our antitrust claims in both cases,” said Bob Ruyak, an attorney for the homeowners.
A spokesperson for State Farm emphasized that the ruling did “not address the accuracy of the allegations” and said that the company looks “forward to presenting our case in court.”
State Farm is facing similar claims in other courts across the country.
National Public Radio notes that State Farms, along with other insurance companies, has been repeatedly sued over allegations that it intentionally reduced payouts for storm damage- and hail-related claims.
In an interview with NPR, Tim Willard—a plaintiff in an Oklahoma-based lawsuit—said that a State Farm adjuster investigated his home for hail damage and quickly determined that the roof needed to be replaced. But, later the same day, the company reversed the decision and denied Willard’s claim. And then State Farm canceled his coverage altogether, leaving him with a heavily damaged roof and no way to obtain a new insurance plan.
“I’m kind of like most Americans,” Willard told NPR. “I just don’t have 20 grand sitting in the bank” for a new roof.
State Farm has also denied Willard’s allegations, telling NPR that the company does not engage in any forms of illegal of illicit activity.
“We strongly reject any implication or political narrative that State Farm engages in illicit or unlawful conduct,” the company said in a statement to NPR. “We work hard to protect our customers from predatory contractors and billboard attorneys who may take advantage of people after a loss.”
Sources
Judge denies move to dismiss State Farm collusion lawsuit
Lawsuits accuse State Farm of secretly working to cut insurance payouts
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