Judge denies move to dismiss State Farm collusion lawsuit

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A Los Angeles judge has denied a petition by State Farm and other insurers to dismiss two lawsuits accusing them of colluding to drive homeowners onto California’s FAIR Plan.The lawsuits, which accuse the insurers of violating the state’s antirust and unfair competition laws, were largely upheld in a decision Thursday by Los Angeles County Superior Court Judge Samantha Jessner.The judge struck two less significant claims from the lawsuits filed last year, but allowed the case to proceed against more than dozen major California insurers, led by State Farm General, the state’s largest.“This is very good news for our people, 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 representing the homeowners.Business The Trump administration’s Department of Justice filed a brief Monday supporting the legal position of L.A.

wildfire victims suing State Farm and other insurers in a state lawsuit.Sevag Sarkissian, a State Farm spokesperson, said the ruling did not “address the accuracy of the allegations” and that the company looks “forward to presenting our case in court.”The lawsuits allege the companies financially benefited when policyholders were dropped and moved onto the FAIR Plan, since they financially back the insurer that sells more expensive policies which offer less coverage.One lawsuit led by Todd and Kimberley Ferrier — whose Pacific Palisades home burned down — seeks to compensate 60 homeowners who experienced fire losses exacerbated by the FAIR Plan’s limited coverage.The other case is a proposed class action that would compensate policyholders for the higher premiums they paid to the plan.The case has garnered the attention of the federal Department of Justice, which filed a brief this month disputing an argument made by the insurers to have the case thrown out.The ...