Yes, there are active class action lawsuits against State Farm — and the company is also facing government enforcement actions, multi-state investigations, and hundreds of individual policyholder lawsuits over its claim handling practices. But if you’re searching this because of what happened with your own claim, the class action landscape is only part of the picture. Illinois law gives you legal options that most people never hear about. In many cases, those options recover more money, faster, than a class action settlement typically would. This article covers the current lawsuits, the pattern behind them, and what to know before you decide how to move forward.
Are there class action lawsuits against State Farm right now?
There are, and the most significant one in Illinois is Huskey v. State Farm Fire & Casualty Co., a proposed class action filed in December 2022 in the Northern District of Illinois. The lawsuit alleges that State Farm uses algorithmic decision-making tools to screen homeowners insurance claims in ways that disproportionately flag Black policyholders for greater scrutiny, in violation of the Fair Housing Act. As of early 2026, the case remains in discovery. The court has limited the first phase specifically to the internal algorithms State Farm uses to sort claims. The supporting evidence includes a 2021 survey of white and Black homeowners with State Farm policies across Illinois and several neighboring states.
Huskey is the most prominent active federal class action, but it isn’t the only major litigation State Farm has faced in Illinois. In 2018, State Farm paid $250 million to settle Hale v. State Farm, a RICO class action in the Southern District of Illinois. The lawsuit alleged that State Farm secretly funded the 2004 election of an Illinois Supreme Court justice, who then cast the deciding vote to overturn a $1.056 billion verdict against the company. More recently, Sproull v. State Farm — alleging improper deduction of nonmaterial depreciation on structural loss claims — received final settlement approval in September 2023. That settlement covered policyholders with claims on Illinois properties between May 2013 and April 2017.
Outside Illinois, the litigation is intensifying. In Oklahoma, the state Attorney General intervened in Hursh v. State Farm in December 2025, alleging the company operated a coordinated program called the “Hail Focus Initiative” to systematically limit roof-related insurance payouts. The AG’s petition cites the Oklahoma Consumer Protection Act, the Oklahoma RICO Act, and the Oklahoma Deceptive Trade Practices Act. As of March 2026, more than 600 Oklahoma homeowners had filed similar lawsuits against State Farm over denied wind and hail claims.
Is State Farm doing this to other people, or is it just my claim?
The volume of litigation and government action against State Farm over the past two years points to something broader than isolated claim disputes.
The “Hail Focus Initiative” is the clearest example. According to NPR’s April 2026 investigation, court filings in Oklahoma homeowner lawsuits allege that State Farm launched a program in 2020 to reduce payouts for full roof replacements. The program allegedly started in Texas and expanded to other states by year-end 2020. The investigation found that the initiative allegedly relies on definitions of “functional damage” — such as requiring fracture or puncture of shingles — that do not appear in customers’ policies. A former State Farm adjuster alleged in court filings that under the program, she was unable to independently approve roof replacements, mark suspected hail damage, or inform clients of coverage decisions without prior approval from superiors. In a December 2025 court filing, State Farm itself acknowledged that denied wind and hail claims in Oklahoma actually number in the thousands.
In Illinois specifically, the state’s own regulators have struggled to get basic information from the company. In November 2024, the Illinois Department of Insurance opened a market conduct examination into State Farm’s homeowners insurance practices. When State Farm refused on three separate occasions to provide the requested data, Attorney General Kwame Raoul filed suit in October 2025 to force compliance. The IDOI’s complaint alleged that homeowners insurance premiums had increased 40% faster than inflation between 2017 and 2022. It also alleged that State Farm’s premiums rose over 16% nationwide in 2024 alone.
Then came the rate hike. In 2025, State Farm increased homeowners insurance rates in Illinois by an average of 27%, affecting approximately 1.5 million policyholders. Governor Pritzker publicly called it “unfair and arbitrary” and accused State Farm of shifting out-of-state costs onto Illinois homeowners.
This is not a company that can’t afford to pay. State Farm reported $12.9 billion in net income and $170 billion in net worth for 2025. That same year, it announced a record $5 billion dividend to its auto policyholders. Meanwhile, it posted a $3.1 billion underwriting loss on its homeowners, commercial multiple peril, and other property lines. State Farm cited that loss to justify the rate increases. State Farm holds a 32.48% market share for homeowners insurance in Illinois, more than double its nearest competitor, insuring roughly 1.5 million policyholders in the state. When a company that size adopts internal claims-handling programs that allegedly apply standards not found in the policies it sold, the impact is not a handful of unlucky claims. It is systemic.
Can I join one of these class actions?
It depends on the case and where you fall within its class definition. Huskey is a proposed class action, meaning the court has not yet certified a class — the case is still in discovery. If a class is eventually certified, policyholders who meet its definition would typically receive notice and an opportunity to participate. The Oklahoma Hail Focus litigation is primarily made up of individual lawsuits, not a single certified class. And the Illinois cases that have already settled — Sproull and Hale — are closed.
But the more important question is whether a class action is actually the best option for what you need.
Class actions against insurance companies typically take years to work through the system. Sproull covered claims from 2013 to 2017 and didn’t receive final settlement approval until 2023. Hale was filed in 2012 and settled in 2018. When these cases do resolve, the per-person payout is often a fraction of what each policyholder actually lost. The settlement fund gets divided across thousands of class members after legal fees. A class action is a powerful tool for addressing industry-wide practices and holding companies accountable at scale. But it is not designed to make any individual policyholder whole.
If your primary concern is recovering what State Farm owes you on your own claim — the full repair cost, the underpayment, the money you’ve been out of pocket while waiting — there is a more direct path under Illinois law. It does not require you to wait for a class to be certified or a settlement to be distributed.
What should I do next?
The class action landscape tells you something important: the problems State Farm policyholders are experiencing are documented, investigated, and being litigated at every level — federal courts, state courts, and state attorneys general. That pattern matters, because it means your claim is not an isolated dispute between you and an adjuster. It exists within a body of evidence about how this company handles claims.
What it also means is that you have options beyond waiting for a class action to play out. Illinois law provides individual remedies if your claim has been denied, underpaid, or unreasonably delayed. Those remedies can recover the full amount owed under your policy, plus attorney fees and additional damages — without depending on class certification or dividing a settlement fund thousands of ways.
At Mag Mile Law in Chicago, the attorneys who handle these cases — including Steven Mikuzis, who is both a licensed attorney and a licensed a property and casualty insurance producer — evaluate policyholder claims against the same carrier practices that are at the center of the lawsuits described above. If you’re a State Farm policyholder in Illinois dealing with a denied, underpaid, or unreasonably delayed claim, a consultation can tell you whether the way your claim was handled warrants individual legal action — and what that action could recover that a class settlement typically would not.
