OKLAHOMA CITY (June 24, 2026) – Attorney General Gentner Drummond today filed a new lawsuit against State Farm Fire and Casualty Company, alleging the insurer engaged in a coordinated scheme to wrongfully deny or underpay legitimate hail and wind damage claims submitted by Oklahoma homeowners. The new lawsuit follows yesterday's Oklahoma Supreme Court decision, which determined that the State's claims must be pursued in a separate action.
Filed in Cleveland County District Court, the lawsuit alleges State Farm implemented an internal program known as the "Hail Focus Initiative" that was designed to reduce roof replacement approvals and minimize claim payments to policyholders across Oklahoma. According to the petition, State Farm marketed homeowners policies as providing replacement-cost coverage for storm-related damage while allegedly using undisclosed internal standards to limit coverage and deny valid claims.
“This case is about more than individual claim disputes,” Drummond said. “The allegations describe a corporate scheme that threatens the integrity of Oklahoma's insurance marketplace and undermines public confidence in an industry families rely on when disaster strikes. My office will continue fighting to ensure Oklahoma consumers receive the benefits they paid for and the fair treatment they deserve.”
The lawsuit alleges State Farm engaged in a pattern of deceptive and fraudulent conduct that harmed policyholders throughout Oklahoma by using undisclosed claims-handling practices, restrictive internal standards and outcome-oriented engineering reviews to reduce claim payments and increase corporate profits. The Attorney General’s Office asserts claims under the Oklahoma Consumer Protection Act, and the Oklahoma Racketeer-Influenced and Corrupt Organizations Act, as well as common-law claims for civil conspiracy and unjust enrichment. The State is seeking injunctive relief, civil penalties, disgorgement of profits, restitution and other relief authorized by law.
“It is unacceptable that Oklahomans are paying rising homeowners insurance premiums yet receiving less protection in return,” Drummond said. “Inflation and weather do not explain, let alone justify, the widening gap between what Oklahomans pay and what they receive. This new action will prevent State Farm from continuing to delay the matter with procedural posturing.”
