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Feb. 24, 2026

Judge weighs RICO claims against State Farm in Palisades fire case

A federal judge heard arguments on whether homeowners may pursue racketeering and fraud claims against State Farm, alleging systemic underinsurance through manipulated software and alter ego liability between affiliated entities.

Judge weighs RICO claims against State Farm in Palisades fire case
U.S. District Judge Mark C. Scarsi

Counsel for survivors of the January 2025 Palisades fire squared off against attorneys for State Farm on Monday as U.S. District Judge Mark C. Scarsi weighed whether to allow bold racketeering and fraud claims to proceed against the insurer on allegations it manipulated software to systemically underinsure its policyholders.

Appearing on behalf of the plaintiffs, Peter D. Scott of Early Sullivan Wright Gizer & McRae LLP in Los Angeles told Scarsi that claims against State Farm...

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