State Farm Faces Class Action Over Covid-Related Claim Denials

Over 100 Virginia businesses can proceed as a class in a suit alleging State Farm Mutual Automobile Insurance Co. wrongfully denied payment for losses they suffered as a result of Covid-19 related closures, a federal court said.

The proposed class members purchased and were issued identical insurance policies, and the State Farm defendants denied every claim for losses or extra expenses they submitted, the U.S. District Court for the Eastern District of Virginia said.

The named plaintiffs asserted various issues amenable to class-wide resolution, including questions about the policy’s meaning and the impact of the State Farm defendants’ conduct, the ...