Judge OKs AG intervention in State Farm suit

Oklahoma's attorney general has received the green light for full intervention in a lawsuit alleging insurance giant State Farm has been engaged in a scheme to limit roof-related payouts for hail and wind damage.

"We are pleased with the court's decision rejecting State Farm's attempt to block our involvement in this case," AG Gentner Drummond said in a written press statement on Wednesday afternoon. "This ruling is a significant win for Oklahoma consumers and affirms the state's authority to step in when the collective interests of insurance consumers are at risk."

Over the objections of State Farm attorneys, Oklahoma County District Court Judge Amy Palumbo on Tuesday granted Drummond's motion to intervene in the case of Broken Arrow homeowners Billy and Lacy Hursh against the state's leading insurer.

It is reportedly one of hundreds of long-running lawsuits that accuse State Farm of wrongfully withholding a billion dollars from customers with valid roof damage claims, according to the Oklahoma Watch.

Drummond's successful motion asserted that State Farm marketed policies providing full roof replacement-cost coverage but then turned around and predetermined claim outcomes to meet corporate savings targets.

The attorney general is seeking the awarding of penalties, damages, structural reforms and the recovery of profits from State Farm, stating the scheme "undermines public confidence in the insurance system and places Oklahoma homeowners at unacceptable risk."

In August, Drummond, who is running for governor in the upcoming 2026 election, sent a letter to Oklahoma Insurance Commissioner Glen Mulready requesting collaboration to combat skyrocketing homeowners insurance premiums.

andrea.eger@tulsaworld.com