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Insurance

May 18, 2026

Judge lets wildfire insurance collusion claims proceed against major carriers

A Los Angeles judge largely preserved antitrust claims accusing major insurers of coordinating policy pullbacks in wildfire-prone areas, ruling homeowners plausibly alleged a group boycott that forced them into costly FAIR Plan coverage.

Judge lets wildfire insurance collusion claims proceed against major carriers
Stephen G. Larson

A Los Angeles judge largely upheld antitrust claims accusing major insurers of engaging in a "group boycott" to restrict homeowners' coverage in California wildfire zones, finding the complaint adequately alleged carriers acted together to reduce competition and push consumers into costly FAIR Plan policies before the January 2025 wildfires.

The U.S. Department of Justice backed the lawsuit earlier this month by filing a statement of interest supporting the plaintiff...

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