How the lawsuits over State Farm's hail claim payouts unfolded
Hundreds of homeowner lawsuits, most of them in Oklahoma, allege that State Farm ran an internal program from 2020 to cut payouts on hail and wind roof claims. Oklahoma Attorney General Gentner Drummond tried to join one case, was blocked by the state Supreme Court, and filed his own racketeering and consumer protection suit in June 2026. State Farm denies wrongdoing and says it pays claims based on each policy and the facts of each loss.
As of 1 November 2026 the attorney general's lawsuit is pending in Cleveland County, hundreds of individual homeowner suits are pending, and the first closely watched Oklahoma County case is set for a jury trial on 7 December 2026. No court has ruled on the merits of the alleged scheme, no class has been certified, and the Oklahoma Insurance Department's market conduct examination report had not been published.
Next date 7 December 2026 Jury trial set to begin in the Oklahoma County homeowner case (CJ-2025-2626) before Judge Amy Palumbo
Oklahoma homeowner suits pending600+law firms cited by NBC News, March 2026
reported first-year drop in payouts$1.4bnas described in internal documents cited by plaintiffs
paid to Oklahoma customers for wind and hail$1bn+State Farm, over two years
individual cases reported settled125reported by KGOU and News 9, June 2026
Timeline of events
Overview · Jun 2020 to Oct 2026 · click a dot to jump
2020
Jun 2020
Turning point
Start
Roof claim program begins in Texas, documents indicate
Internal State Farm documents later made public in an Oklahoma case describe a June 2020 kickoff in Dallas County, Texas, followed by statewide and then nationwide rollout by the end of 2020, according to News 9. Plaintiffs in lawsuits reviewed by NPR allege the program aimed to cut payouts for full roof replacements.
About 125 individual bad-faith cases reported settled
KGOU and News 9 reported in June 2026 that State Farm had earlier settled 125 similar bad-faith cases in Oklahoma, which News 9 said cost tens of millions of dollars, including one of about $3 million over a roof claim worth about $30,000. NPR reported that such settlements typically require confidentiality and the return or destruction of discovery documents.
A Broken Arrow couple sued State Farm in Oklahoma County District Court (CJ-2025-2626) after their hail roof claim was denied. They allege the insurer used predetermined rules that led to denials regardless of the damage, according to News 9. It is the case in which the attorney general later sought to intervene.
Attorney General Gentner Drummond sent a letter asking Insurance Commissioner Glen Mulready to work with his office on rising homeowners insurance premiums, according to the attorney general's office.
Attorney general moves to intervene in the Oklahoma County case
Drummond filed a petition to intervene in the Oklahoma County case. His office alleged State Farm ran a coordinated program, commonly called the Hail Focus Initiative, to deny or reduce valid hail and wind roof claims, and sought penalties, damages, structural reforms and recovery of profits.
“Oklahomans are paying rising homeowners insurance premiums yet receiving less protection in return”Gentner Drummond, Oklahoma Attorney General, Oklahoma Office of the Attorney General
Oklahoma County District Judge Amy Palumbo granted Drummond's motion to intervene and rejected State Farm's attempt to block his participation, the attorney general's office announced on 31 December.
“affirms the state's authority to step in when the collective interests of insurance consumers are at risk”Gentner Drummond, Oklahoma Attorney General, Oklahoma Office of the Attorney General
State Farm asks the Supreme Court to block the intervention
State Farm asked the Oklahoma Supreme Court to decide whether the attorney general has authority to intervene in an individual civil case, according to KFOR as republished by InsuranceNewsNet. Repairer Driven News reported that a 20 January State Farm motion to dismiss the attorney general's claims argued that the Consumer Protection Act does not cover insurance, which the insurance commissioner regulates, and that the racketeering claim was insufficient.
State Farm describes the 2020 effort as an accuracy initiative
NBC News reported that law firms said more than 600 Oklahoma homeowners had similar suits pending. In legal filings State Farm denied wrongdoing and described the initiative at issue as an accuracy effort, and it told NBC News it had paid more than $1 billion to Oklahoma customers for wind and hail damage.
“an effort State Farm first undertook in 2020 to improve the accuracy, quality, and consistency of wind/hail claims handling”State Farm, in legal filings quoted by NBC News, NBC News (via AOL)
State Farm reports $5.6 billion in 2025 hail payouts
Insurance Journal reported that State Farm said it paid about $5.6 billion nationally on hail claims in 2025, including $1.4 billion in Texas. The company rejected media and lawsuit claims of a broader intentional effort to underpay or deny wind and hail roof claims.
“Allegations in litigation are just that: allegations, driven by billboard attorneys”State Farm, Insurance Journal
$5.6 billion hail claims paid nationally in 2025, as reported by State FarmInsurance Journal
27 Apr 2026
Legal step
Supreme Court hears arguments on the intervention
The Oklahoma Supreme Court heard oral arguments. State Farm's lawyer argued the intervention violated the state constitution's separation of powers. Solicitor General Garry Gaskins argued the attorney general's and the homeowners' claims arose from the same alleged program, according to KGOU.
“The Attorney General's claims and the plaintiff's claims arise from the same Hail Focus Initiative.”Garry Gaskins, Oklahoma Solicitor General, KGOU
NPR said it reviewed nearly two dozen lawsuits, out of hundreds nationwide, alleging State Farm assessed claims using definitions not found in policies and had managers review adjusters' roof assessments. State Farm said it pays what it owes and strongly rejects claims of unlawful conduct. Oklahoma's insurance commissioner said regulators had been investigating roof claim handling for two years.
“based on the terms of individual policies and the facts of each case”State Farm, as quoted by NPR, NPR (via Michigan Public)
Supreme Court bars the attorney general from the private case
The Oklahoma Supreme Court unanimously ruled that Judge Palumbo exceeded her authority by allowing the intervention, finding that the racketeering claims would impermissibly expand the private contract dispute, according to KGOU and the Tulsa World. The court pointed to a separate, independent lawsuit as the path forward.
“I thank the Oklahoma Supreme Court for bringing clarity to the appropriate forum where the case needs to be filed.”Gentner Drummond, Oklahoma Attorney General, KGOU
Supreme Court declines State Farm's discovery challenge
In a separate action in the same case, the Supreme Court declined State Farm's challenge to orders requiring production of internal documents and executive depositions, according to News 9 and KGOU.
Drummond sued State Farm Fire and Casualty Co. in Cleveland County District Court, alleging violations of the Oklahoma Consumer Protection Act and the state racketeering act, civil conspiracy and unjust enrichment. The 21-page petition alleges deceptive sales and renewal practices and improper claim denials since 2020, and seeks an injunction, civil penalties, restitution and disgorgement.
“This case is about more than individual claim disputes”Gentner Drummond, Oklahoma Attorney General, Oklahoma Office of the Attorney General
State Farm said it was pleased with the Supreme Court's unanimous decision, that the attorney general's lawsuit does not change the facts, and that the allegations appear driven more by political motivations than by facts, according to the Tulsa World.
Attorney general demands the overdue examination report
Drummond asked Insurance Commissioner Glen Mulready to release the department's examination of insurers' roof claim handling, saying Mulready had pledged findings in the first quarter of 2026. In a 31 July reply, Mulready said an independent examiner was still conducting the market conduct examination and that no verified report had been received.
“Oklahomans deserve answers, not excuses.”Gentner Drummond, Oklahoma Attorney General, Oklahoma Office of the Attorney General
Judge Palumbo granted the homeowners' motions to enforce earlier discovery orders, required State Farm to produce key executives for deposition and set a document deadline of 3 September. She imposed no sanctions. Trial was set for 7 December. State Farm said it could not comment on ongoing litigation.
“I do not appreciate wasting the court's time.”Judge Amy Palumbo, News 9
Comanche County hearing on documents and CEO deposition
A Comanche County district judge heard homeowners' motions in case CJ-2025-135 to unseal internal State Farm documents and to depose chief executive Jon Farney. The homeowners are represented by Whitten Burrage. State Farm said it evaluates each claim on the facts of the loss and the policy terms.
Comanche County judge rejects most trade secret claims
The Comanche County judge found that most of the disputed documents did not contain trade secrets and gave State Farm 30 days to re-designate only material that qualifies as confidential, according to News 9. A later release reported that 31 documents were de-designated.
Documents produced under the order reportedly describe roof claims as 57 percent of payouts, extra manager sign-off for replacements and weekly tracking of repair decisions, and credit the effort with a $1.4 billion drop in payouts in its first year, according to News 9 and plaintiffs' lawyers. State Farm disputes the allegations and says pending bad faith suits are about 1 percent of some 30,000 Oklahoma claims over five years.
Insurance Department says it is reviewing the documents
The Oklahoma Insurance Department said it was reviewing the released State Farm documents as part of a market conduct examination of claims, was pressing the independent examiner to submit its report, and had signed an agreement with the attorney general's office to share confidential information. It said it would not prejudge the litigation.
“The recent release of these documents is significant and warrants our careful attention.”Glen Mulready, Oklahoma Insurance Commissioner, Oklahoma Insurance Department
State Farm's chief executive ordered to sit for deposition
The Tulsa World reported that Judge Palumbo denied State Farm's request to excuse its chief executive from a deposition in the Oklahoma County case. State Farm said the allegations were serious but remained allegations to be addressed through the legal process.
“are only that, allegations, and should be addressed through the legal process”State Farm, as quoted by the Tulsa World, Tulsa World (via InsuranceNewsNet)
More internal documents released from confidentiality
Judge Palumbo ordered 11 of 24 disputed internal State Farm documents de-designated from confidentiality and took the remaining 13 under advisement, according to The Oklahoman and the Merlin Law Group blog. The Oklahoman reported that she warned State Farm of possible sanctions over discovery, and that State Farm called the plaintiffs' narrative misleading.
Two State Farm executives were deposed ahead of the December trial, KOKH reported on 5 October, citing a 1 October court document saying discovery remained an issue. State Farm called the plaintiffs' characterizations false and said it evaluates each claim based on the loss and the coverage purchased.
SState Farm, as quoted by KOKHOct 2026
State Farm evaluates each claim based on the facts of the loss and the coverage purchased.
Last updated 1 November 2026. Spotted an error? See corrections. Every event links to the record it comes from. Allegations are attributed to whoever made them.