August 2, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Lawsuits Allege Insurance Giants Conspired to Undercut California Fire Victims

Two Lawsuits Accuse Top Carriers of Price-Fixing and Violating Antitrust Laws

Attorneys representing homeowners impacted by California’s January wildfires have filed a pair of lawsuits in Los Angeles County, accusing major insurance companies of orchestrating a scheme to restrict traditional coverage in high-risk fire zones, forcing policyholders into the state’s limited and expensive FAIR Plan.

The legal complaints, brought by Larson LLP and Shernoff Bidart Echeverria LLP, allege that State Farm, Farmers, and more than 20 other insurers, which collectively hold about 75% of the state’s home insurance market, colluded to cancel or deny policies in areas including Malibu, Pacific Palisades, and Altadena just before the fires hit. The plaintiffs argue that this abrupt and coordinated withdrawal violated California’s antitrust and unfair competition laws, leaving thousands of residents financially exposed during a time of crisis.

Rather than providing the standard, comprehensive coverage homeowners had relied on for years, the insurers allegedly funneled affected residents into the California FAIR (Fair Access to Insurance Requirements) Plan—a last-resort option designed for those who cannot secure private insurance. FAIR Plan policies cap payouts at $3 million and cost, on average, more than twice as much as typical policies, while offering far more limited protections.

“Insurance should be there when disaster strikes,” said attorney Michael J. Bidart of Shernoff Bidart Echeverria LLP. “Instead, these companies pulled the rug out from under our clients, saddling them with overpriced, inadequate coverage when they needed it most.”

One of the complaints, Todd Ferrier et al. v. State Farm Group et al., was filed on behalf of homeowners who lost properties in the January wildfires. The plaintiffs claim they had sufficient insurance coverage until their policies were abruptly canceled or non-renewed, forcing them to purchase FAIR Plan policies just months before the disaster. As a result, their insurance payouts fell far short of covering their losses.

The second case, Anthony Canzoneri v. State Farm Group et al., seeks class-action status on behalf of all policyholders who were pushed into the FAIR Plan after January 2023, when the alleged conspiracy is alleged to have begun. It asserts that homeowners throughout California have paid steep premiums for substandard policies as a result of insurers’ coordinated effort to limit exposure in wildfire zones.

The suits also highlight what they describe as structural flaws in the FAIR Plan system. Insurers are the sole voting members of the plan’s governing body and are required to fund the program in proportion to their market share. The plan was underfunded at the time of the fires, according to the lawsuits, and changes approved by the state in 2024 now allow companies to recoup those contributions by raising premiums for customers in low-risk areas, creating additional incentives for insurers to reduce their risk by pushing more customers onto the FAIR Plan.

Stephen G. Larson, co-counsel in the litigation, said the case is not only about seeking damages for victims of the wildfires but also about restoring competition and fairness to California’s insurance market. “This kind of coordinated market manipulation is exactly what antitrust laws are meant to prevent,” Larson said. “We intend to hold these companies accountable and ensure Californians have access to the coverage they need and deserve.”

While the lawsuits focus on those directly impacted by the wildfires, others have shared similar experiences. Alicia Kalvin, a homeowner in a fire-prone area, said she was dropped by her insurer last July and denied coverage by multiple other providers. “I was told the FAIR Plan was my only option,” she said, as quoted by NBC News Palm Springs. Though her house survived the fires, toxic ash rendered it uninhabitable, and she remains uncertain whether her insurer will cover rental assistance or restoration costs.

Related Posts

Two LA County Deputies Charged in Off-Duty Scheme Tied to Crypto ‘Godfather’

August 2, 2025

August 2, 2025

Deputies Accused of Abusing Law Enforcement Powers for Beverly Hills Mogul One Los Angeles County Sheriff’s Department deputy pleaded guilty,...

Metro Releases Draft Environmental Report for Sepulveda Transit Project, Public Comment Now Open

August 2, 2025

August 2, 2025

Six Route Alternatives Under Review for Valley-To-Westside Connection The Los Angeles County Metropolitan Transportation Authority (Metro) has released its Draft...

Trump Administration Freezes $200M in UCLA Research Funds Over Student Protests

August 2, 2025

August 2, 2025

UCLA Says Freeze Harms Life-Saving Research With No Connection to Stated Reason Donald Trump’s administration has blocked $200 million in...

Culver City’s National Night Out Returns August 5 With K9 Demo, Live Music, and Fun

August 2, 2025

August 2, 2025

This Year’s Celebration Moves to the Culver Steps to Encourage Community Spirit Culver City’s annual National Night Out celebration returns...

City Installs Crosswalks In Sawtelle District After Residents Paint Their Own

August 1, 2025

August 1, 2025

Los Angeles Begins Official Safety Upgrades Near Stoner Park City crews began installing official crosswalks Friday near Stoner Park in...

HARD Summer Returns This Weekend With New Sound Strategy After 2024 Noise Complaints

August 1, 2025

August 1, 2025

Sold-Out EDM and Hip-Hop Festival Runs Saturday and Sunday at Hollywood Park The HARD Summer music festival is set to...

Free Document Shredding, Electronics Recycling Set for Saturday in Culver City

August 1, 2025

August 1, 2025

Culver City Offers Secure Way to Recycle Tech and Shred Paper This Weekend Residents will have the opportunity to responsibly...

Last Call: Culver City Wants Your Input in Hiring Its Next City Manager

July 31, 2025

July 31, 2025

Public Survey Open Through August 1 Invites Residents to Weigh In As Culver City begins its search for a new...

1,000 Additional National Guard Troops Withdrawn From LA as Federal Presence Continues to Shrink

July 31, 2025

July 31, 2025

National Guard Presence in Los Angeles Slashed Again Amid Ongoing Rollback Roughly an additional 1,000 National Guard troops have been...

Luxury Watches Stolen From Keanu Reeves Recovered in Chile, To Be Returned to Actor

July 31, 2025

July 31, 2025

Six Rolex Watches Worth Over $120,000 Were Seized in Santiago Police Raid Six high-end watches stolen from actor Keanu Reeves’...

Aging Mindfully: Zen-Inspired Senior Living Takes Shape in Simi Valley

July 31, 2025

July 31, 2025

Two Zen-inspired senior living communities are embracing the reality of aging — consciously. Ensō Village, open since 2023 in Sonoma County,...

Trio of Suspects Busted in $50K Beauty Heist at Culver City Store

July 31, 2025

July 31, 2025

Burglars Try to Flee, But Culver City PD Catches All ThreePolice arrested three suspects late Sunday night following a break-in...

Lulu Hosts Summer Tardeada With Guest Chef From Oakland’s Bombera

July 30, 2025

July 30, 2025

Chef Dominica Rice-Cisneros Joins Alice Waters for a Courtyard Celebration Lulu, the acclaimed restaurant located at the Hammer Museum, will...

Film Review: Together

July 30, 2025

July 30, 2025

By Dolores Quintana Dave Franco and Alison Brie, a married couple in real life, star in Michael Shanks’ gruesomely passionate...

Heidi Klum’s Tropical Erewhon Smoothie Drops Just in Time for Summer

July 30, 2025

July 30, 2025

Supermodel’s Limited-Edition Drink Blends Kiwi, Coconut, and Matcha Erewhon has debuted its newest celebrity smoothie collaboration, this time with supermodel...