Los Angeles County sued State Farm General in Los Angeles County Superior Court over its handling of claims from the 2025 Palisades and Eaton wildfires. The county alleges illegal and deceptive business practices, including unreasonable delays, systematic underpayments, suppressed smoke-damage claims and drastically reduced loss estimates. The complaint seeks full restitution for policyholders and civil penalties. State Farm strongly disputes the county’s characterization, saying it has paid more than $6.2 billion on claims related to the fires, including about $1 billion for smoke damage, and that 78% of claims have been closed. The lawsuit follows complaints from hundreds of policyholders and an investigation that included documents collected from State Farm customers; county officials said the insurer failed to substantially comply with requests for information. California Insurance Commissioner Ricardo Lara separately said in May that an investigation found widespread claims mishandling and that he was seeking millions of dollars in penalties, potentially including a one-year license suspension.