State Farm Class Action Lawsuits & $78.75M Delta Jet Fuel Dumping Settlement, Status & How to File Claims
State Farm faces multiple 2025 class actions alleging systematic undervaluation of total loss vehicle claims using CCC software, with recent lawsuits filed in Alabama (December 2025), North Carolina (October 2025), and PHL life insurance fraud claims (November 2025). Separately, Delta Air Lines’ $78.75 million settlement for dumping 15,000 gallons of jet fuel over Southern California homes in 2025 requires claims by February 6, 2026, with final approval scheduled for May 18, 2026. Approximately 38,000 property owners and 160,000 residents qualify for payments averaging $1,300 per household.
State Farm Class Action Lawsuits: What You Need to Know
Alabama Total Loss Lawsuit (Filed December 2025)
Plaintiff: James Goode
Case: Goode, et al. v. State Farm Mutual Insurance Co., Case No. 5:25-cv-02102, U.S. District Court for the Northern District of Alabama
Core allegation: State Farm “systematically reduces” the retail cost of comparable vehicles when calculating total loss payments using CCC Information Services software to manipulate data and underpay claims.
What Goode claims: Instead of using actual retail cost of comparable vehicles as required by Alabama law, State Farm applies artificial reductions through its valuation methodology, resulting in policyholders receiving thousands less than their vehicles’ true market value.
Status: Lawsuit filed December 23, 2025. No class certification yet. Case in preliminary stages.
North Carolina Total Loss Lawsuit (Filed October 2025)
Plaintiff: Craig Brewer
Case: Brewer v. State Farm Mutual Automobile Insurance Co., Case No. 1:25-cv-00904, U.S. District Court for the Middle District of North Carolina
Core allegation: State Farm has a “systematic and uniform” practice of reducing retail costs of comparable vehicles, violating North Carolina’s motor vehicle total loss regulation.
What Brewer argues: “When valuing vehicle total loss claims, it is improper for insurance companies to undervalue and underpay the claims by manipulating the data used to value the vehicles.”
Status: Filed October 2025. Discovery ongoing. No trial date set.
California Homeowners Lawsuit (Class Certified June 2025)
Case: U.S. District Court for the Northern District of California
Class size: Nearly 200,000 homeowners
Core allegation: State Farm unlawfully deducted sales tax when calculating actual cash value of homeowners’ personal property, underpaying property insurance claims in violation of California insurance codes.
Status: Judge William H. Orrick certified class on June 18, 2025. Litigation ongoing.
Related article: SNHU Class Action Lawsuit: Students Sue Over GPA Data Shared With TikTok and Google
PHL Life Insurance Fraud Lawsuit (Filed November 2025)
Plaintiffs: Jenny Nappo, Patrick McLaughlin, Gordon Jason
Case: Jason v. State Farm, filed Chicago federal court November 26, 2025
Core allegations:
- State Farm sold life insurance and annuity products from PHL Variable Insurance Co. knowing PHL had a $2.2 billion capital shortfall
- State Farm concealed information about potential consequences on policies
- Nappo received only $300,000 from a $2 million life insurance policy after her husband died
- McLaughlin and Jason’s payouts capped at $300,000 despite purchasing $1.5 million and $500,000 policies
Claims: Fraud, unjust enrichment, failure to disclose material facts
What plaintiffs allege: State Farm knew about PHL’s deteriorating finances after its credit downgrade to junk in 2009, stopped selling Phoenix products but continued servicing existing clients while receiving millions in compensation—all without informing policyholders their coverage was at risk.
Status: Seeking class certification. State Farm has not yet been served. No hearing scheduled.
Arkansas Total Loss Victory (September 2025)
Result: Federal jury unanimously found State Farm used a flawed vehicle valuation system to underpay approximately 37,000 policyholders on total-loss claims.
Estimated damages: $30-$40 million
Significance: This verdict establishes precedent that State Farm’s CCC software methodology constitutes breach of contract, strengthening similar claims in Alabama, North Carolina, and other states.
$78.75M Delta Jet Fuel Dumping Class Action Settlement
What Happened: The January 14, 2025 Incident
Delta Flight 89 departed Los Angeles International Airport bound for Shanghai on January 14, 2025, carrying 167 passengers and crew. Shortly after takeoff, the Boeing 777 experienced a compressor stall in its right engine, forcing an emergency return to LAX.
To reduce landing weight and prevent an overweight emergency landing (the aircraft exceeded maximum landing weight by 160,000 pounds), pilots jettisoned approximately 15,000 gallons of jet fuel.
The problem: Instead of dumping fuel over the Pacific Ocean or at high altitude where it would dissipate, pilots released fuel at low altitude over densely populated areas in Los Angeles and Orange counties.
Impact: Jet fuel rained down on approximately 38,000 properties including homes, schools, and playgrounds. More than 60 people, including children, received treatment for minor injuries. Residents reported property damage, contamination, and lingering health concerns.
Settlement Terms
Total amount: $78,750,000
Net distribution: Approximately $50.6 million after legal fees and costs ($24 million for attorneys, $2 million for litigation costs)
Who qualifies: Individuals who owned, resided in, or rented properties in the affected area on January 14, 2025
Class size: Approximately 198,000 people
- 38,000 property owners
- 160,000 residents/renters
Payment structure:
- 67% to property owners ($33,895,300 fund) – divided equally among valid claims
- 33% to residents/renters ($16,694,700 fund) – divided equally among valid claims
- Individuals who both owned and lived in affected properties receive payments from both funds
Average payment: Approximately $1,300 per household (varies based on total claims filed)
How to File a Claim
Deadline: February 6, 2026
Required documentation:
For property owners:
- Proof of ownership (title, deed, property tax records, mortgage documents)
- Proof property was in affected area on January 14, 2025
For residents/renters:
- Proof of residence (utility bills, lease agreements, bank statements)
- Documentation showing residence in affected area on January 14, 2025
Where to file: Visit the official settlement website managed by Verita Global, LLC (settlement administrator)
Address lookup: Settlement website includes interactive map and address lookup tool to verify if your property is in the class area
Important: Claims must be filed under penalty of perjury. Do not file if you don’t qualify—fraudulent claims harm eligible class members and may result in legal consequences.
Settlement Timeline
August 27, 2025: Settlement agreement filed in U.S. District Court, Central District of California (Case No. 20-00786)
September 15, 2025: Preliminary approval hearing before Judge John A. Kronstadt
February 6, 2026: Deadline for claims, exclusions, and objections
May 18, 2026: Final approval hearing
Payment distribution: Approximately 110 days after final approval (estimated August-September 2026 if approved in May)
Legal Claims Resolved by Settlement
Trespass: Fuel physically landed on private property without permission
Nuisance: Contamination interfered with property owners’ use and enjoyment of their property
Negligence: Pilots allegedly failed to follow standard fuel-dumping procedures requiring high altitude release over unpopulated areas
Property damage: Contamination caused actual damage to homes, vehicles, and personal property
Personal injury: Residents suffered respiratory irritation and other minor injuries from fuel exposure
Delta’s Position: No Admission of Liability
Delta denies all wrongdoing and maintains:
- Pilots “did exactly what federal regulations and their FAA-approved training required”
- FAA investigation cleared crew of misconduct
- Emergency required immediate fuel jettison due to 160,000-pound overweight condition
- Pilots faced risk of second engine failure with unknown cause
- Company settled “to avoid uncertainty, distraction, and cost of litigation”
The settlement agreement explicitly states Delta “vigorously denies all claims” and admits no liability.
Legal Significance: What These Cases Mean
State Farm Pattern: Nationwide Algorithmic Underpayment
The multiple State Farm lawsuits reveal an alleged nationwide pattern:
Systematic methodology: State Farm uses CCC Information Services software across all states to calculate total loss values, applying what plaintiffs call artificial “typical negotiation adjustments” reducing payouts 4-11%.
Consumer protection violations: Lawsuits invoke state consumer fraud statutes, breach of contract claims, and insurance code violations.
Class action viability: The Arkansas jury verdict ($30-40 million for 37,000 policyholders) demonstrates courts and juries find these claims credible and quantifiable, encouraging similar litigation in other jurisdictions.
September 2025 Illinois ruling: Judge Virginia M. Kendall granted State Farm partial summary judgment, dismissing claims under Alaska and West Virginia consumer protection acts (which exempt insurers) but allowing Kentucky and Mississippi claims to proceed. The ruling also found State Farm’s “typical negotiation adjustment” constitutes more than a simple valuation dispute—it involves alleged concealment of the methodology, making it a legal dispute courts can adjudicate without triggering policy appraisal requirements.
Delta Precedent: Corporate Liability for Emergency Decisions
Environmental trespass: The settlement establishes that airlines can face substantial liability for emergency fuel dumps over populated areas, even when FAA clears crew of regulatory violations.
Strict liability standard: Plaintiffs successfully argued Delta is liable for trespass and nuisance regardless of pilots’ good-faith emergency decision-making—the physical contamination of property creates automatic liability.
Deterrent effect: The $78.75 million payout sends industry-wide message that fuel dumping procedures must prioritize ground safety. Airlines may implement stricter protocols requiring fuel burns via holding patterns or ocean dumps unless immediate catastrophic risk exists.
Class certification success: Courts certified class despite Delta’s argument that individual property damage assessments required individualized proof. Settlement’s pro rata distribution model (equal shares to all affected properties) provides template for future mass environmental contamination cases.
How to Protect Your Rights
For State Farm Policyholders Who Had Total Loss Claims:
If you had a total loss claim in 2025:
- Compare State Farm’s payout to independent valuations (Kelley Blue Book, NADA Guides, Edmunds)
- Request complete valuation report showing comparable vehicles used
- Look for “typical negotiation adjustment” or similar reductions
- Save all documentation (settlement letters, comparable vehicle data, communications)
- Contact class action attorneys if payout seemed 10%+ below market value
- Monitor case developments in your state—new lawsuits may emerge allowing you to join
Consumer complaints:
- File complaints with your state insurance commissioner
- Report to state attorney general consumer protection division
- Document undervaluation patterns for potential future litigation
For Delta Settlement Class Members:
Act before February 6, 2026:
- Verify your property is in class area using settlement website address lookup
- Gather required documentation (property records or residence proof)
- File claim online through official settlement website
- Consider whether to opt out (deadline February 6, 2026) if you want to pursue individual lawsuit
- File objection (deadline February 6, 2026) if you believe settlement is inadequate
Opting out: Class members can exclude themselves from the settlement to pursue individual lawsuits. This makes sense only if your property damage significantly exceeds the average $1,300 payout and you can prove substantial individual harm.
Objecting: Class members can object to the settlement terms while remaining in the class. Objections must be filed with the court by February 6, 2026.
FAQ: State Farm & Delta Class Actions
What is the State Farm class action about?
Multiple lawsuits allege State Farm systematically underpays total loss vehicle claims using CCC software that artificially reduces comparable vehicle values by 4-11%. Recent cases filed in Alabama (December 2025) and North Carolina (October 2025) join earlier litigation in California, Missouri, Arkansas, and other states.
Can I join the State Farm lawsuit?
State Farm lawsuits are state-specific. If you had a total loss claim with State Farm and believe you were underpaid, contact class action attorneys practicing in your state. The Arkansas September 2025 verdict ($30-40 million for 37,000 policyholders) may encourage attorneys to file new cases in additional states.
What is the Delta jet fuel dumping settlement?
Delta agreed to pay $78.75 million to resolve claims that Flight 89 dumped 15,000 gallons of jet fuel over Southern California homes and schools on January 14, 2025. Approximately 198,000 property owners and residents qualify for payments.
Who qualifies for the Delta settlement?
Individuals who owned, resided in, or rented properties in the affected area on January 14, 2025. The settlement website provides an interactive map and address lookup tool to verify eligibility.
How much will I receive from the Delta settlement?
Average payment is approximately $1,300 per household, but final amounts depend on total claims filed. Property owners receive payments from a fund representing 67% of net settlement ($33.9 million). Residents receive payments from a fund representing 33% ($16.7 million). Those who both owned and lived in affected properties receive both payments.
What’s the deadline to file a Delta claim?
February 6, 2026. Claims must be filed online through the official settlement website managed by Verita Global, LLC.
When will Delta settlement payments be made?
Approximately 110 days after final approval. If the court approves the settlement at the May 18, 2026 hearing, payments should be distributed by August-September 2026.
What documentation do I need for Delta claims?
Property owners need proof of ownership (deed, title, property tax records). Residents/renters need proof of residence (utility bills, lease agreements, bank statements). All must show they were in the affected area on January 14, 2025.
Did Delta admit wrongdoing?
No. Delta denies all allegations and maintains pilots followed proper emergency procedures. The company settled “to avoid uncertainty, distraction, and cost of litigation.” An FAA investigation cleared the crew of regulatory violations.
Can I sue Delta individually instead of taking the settlement?
Yes, but you must opt out by February 6, 2026. Opting out makes sense only if your damages significantly exceed $1,300 and you can prove substantial individual harm warranting independent litigation costs.
What was the PHL life insurance State Farm lawsuit about?
Three plaintiffs filed a November 2025 lawsuit alleging State Farm sold life insurance and annuity products from PHL Variable Insurance Co. while concealing PHL’s $2.2 billion capital shortfall. One widow received only $300,000 from a $2 million policy. The lawsuit seeks class status for all affected policyholders.
How do I know if my State Farm life insurance policy is affected?
If you purchased life insurance or annuities from State Farm backed by PHL Variable Insurance Co. (formerly Phoenix Companies), your policy may be affected. Contact the attorneys representing the lawsuit: Jason v. State Farm, Chicago federal court, filed November 26, 2025.
What happened in the Arkansas State Farm case?
A federal jury unanimously found State Farm breached contracts by using flawed vehicle valuation software to underpay approximately 37,000 policyholders. Estimated damages: $30-40 million. The September 2025 verdict strengthens similar claims nationwide.
Resources:
State Farm Cases:
- Alabama: Goode v. State Farm, Case No. 5:25-cv-02102, N.D. Ala.
- North Carolina: Brewer v. State Farm, Case No. 1:25-cv-00904, M.D.N.C.
- Illinois: Jason v. State Farm, N.D. Ill. (November 2025)
- California homeowners: N.D. Cal. (class certified June 2025)
Delta Settlement:
- Case: In re Delta Air Lines Inc., Case No. 20-00786, C.D. Cal.
- Settlement website: (managed by Verita Global, LLC)
- Claim deadline: February 6, 2026
- Final approval hearing: May 18, 2026
Consumer Protection Resources:
- National Association of Insurance Commissioners: www.naic.org
- State insurance commissioners: Contact your state department of insurance
- Consumer Financial Protection Bureau: www.consumerfinance.gov
For additional articles on class action litigation, consumer protection law, and insurance disputes, visit AllAboutLawyer.com’s legal resources.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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