State Farm Total Loss Payment Fraud

State Farm Total Loss Payment Fraud

State Farm Insurance is facing lawsuits alleging the company systematically undervalued vehicles for total loss payments based on arbitrary adjustments. State Farm policyholders affected by the company’s fraudulent valuation practices may be eligible for compensation.

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Our Role

Seeger Weiss filed a nationwide class action lawsuit on behalf of current and former State Farm policyholders alleging a deceptive, fraudulent, and unfair scheme through which the company systematically undervalued total loss vehicles to reduce payments to customers with total loss claims.

  • 3/18/22

    Plaintiffs filed a complaint detailing the claims against defendant State Farm. The complaint alleges that defendants set up a fraudulent valuation scheme to undervalue total-loss vehicles.

  • 8/12/22

    State Farm filed a motion to dismiss arguing that policyholders have a process to dispute claims and the plaintiffs had not used that process. The company also stated that these claims were duplicative of cases pending in other jurisdictions.

  • 6/21/23

    U.S. District Judge Virginia Kendall denied State Farm’s motion to compel appraisal, motion to dismiss under the first to file rule, and motion to dismiss headless claims on procedural grounds.