Oklahoma Attorney General Gentner Drummond has initiated legal action against State Farm and Allstate, accusing both insurance carriers of engaging in practices that result in the underpayment of legitimate homeowner storm damage claims. The lawsuits, filed in Cleveland County, allege violations of the Oklahoma Consumer Protection Act and anti-racketeering statutes, seeking restitution and civil penalties.
Drummond described the two cases as parallel, noting they share a similar factual background and legal framework. He stated that internal documents suggest an organized effort within State Farm to defraud policyholders. According to the Attorney General, adjusters sometimes determined that roofs sustained little to no storm damage or applied excessive depreciation rates to reduce payout amounts.
In a separate case involving State Farm in Oklahoma County, Judge Amy Palumbo ordered the company to produce disputed internal documents. Reggie Whitten, an attorney representing a homeowner in that lawsuit, claims State Farm has implemented a company-wide scheme to limit payouts. Whitten argued that the withheld documents could reveal how the insurer determines payment amounts.
State Farm representatives previously told the court that the documents could not be released due to trade secret protections.
Both State Farm and Allstate have denied any wrongdoing. Neither lawsuit has reached a trial, and no dates have been scheduled for court proceedings. The Attorney General emphasized that insurers have a duty to treat Oklahomans with weather damage fairly, rather than prioritizing premium revenue over claim obligations.