Oklahoma AG Seeks to Intervene in State Farm Lawsuit Over Claims Practices

OKLAHOMA CITY – On Thursday, Oklahoma Attorney General Gentner Drummond announced he is moving to intervene in a lawsuit involving a Broken Arrow family and State Farm Insurance. This action follows recent reports from Oklahoma Watch stating that multiple families claim State Farm has underpaid storm damage claims.

Drummond stated, “If we are permitted to intervene, then we will jump in the middle of the discovery issues so that I can build a fact pattern. Is this an isolated incident just to these plaintiffs? Or is there a pattern in practice throughout Oklahoma with State Farm?” The decision to allow his intervention now rests with the judge presiding over the case.

His office has detailed serious allegations against State Farm, including claims of racketeering. This term is typically associated with organized crime. “I think that the racketeering is by virtue of what appears to be a coordinated effort throughout State Farm,” Drummond explained.

Drummond revealed his office had been investigating State Farm for three months prior to the lawsuit becoming public. Oklahoma Watch reporter JC Hallman has logged over 200 related cases and believes the total number of affected parties could reach into the thousands. “I think there are lots and lots of people out there who have not yet acted, but who might,” he remarked.

State Farm responded to the allegations, stating, “At State Farm, every claim is important to us, and each claim is unique and handled on its individual merits. The fact that someone files a lawsuit does not mean the allegations made are true.”

If Drummond’s intervention is successful and he uncovers evidence supporting systematic underpayments, he may seek a significant settlement on behalf of the state. He said this could create a resource pool for Oklahomans who may have been denied their full insurance benefits.

The Oklahoma Insurance Department is not a party to the lawsuit but has been conducting its own investigation into claims processing practices for several years. Insurance Commissioner Glen Mulready commented, “We recognize Attorney General Drummond’s efforts concerning State Farm. We have had ongoing investigations, and we expect to wrap those up by the first quarter of 2026.”

Drummond’s intervention highlights ongoing tensions between his office and the insurance commissioner over their roles in regulating the industry. His latest move may reveal more about State Farm’s practices and lead to potential restitution for affected policyholders.