L.A. County Fire Victims v. USAA & AAA — Los Angeles Superior Court (Filed June 5 2025)
More than 300 homeowners who lost properties in January’s Malibu wildfires allege the insurers systematically under‑valued rebuilding costs, leaving them catastrophically under‑insured.
Claims at a Glance
- Fraud and bad‑faith refusal to conduct on‑site appraisals.
- RICO‑style conspiracy alleging coordinated software‑driven devaluation of claims across carriers.
Industry Stakes
- A plaintiff win could force revisions to underwriting models in high‑risk ZIP codes throughout Los Angeles County.
- Adds momentum to the nationwide wave of climate‑related coverage litigation.
Timeline
Plaintiffs will seek case coordination with existing Eaton Fire class actions; insurers are preparing motions to stay pending California Department of Insurance rule‑making on wildfire coverage.
