Allstate, State Farm Sued Over $4 Billion Maui Fire Settlement
- Homeowners accuse insurers of greed in seeking reimbursements
- Accord still awaiting final approval would resolve lawsuits
Search and recovery team members check charred buildings and cars in the aftermath of the Maui Fires in Lahaina, West Maui, Hawaii, on Aug. 17, 2023.
Photographer: Yuki Iwamura/AFP/Getty ImagesThis article is for subscribers only.
A half-dozen Maui wildfire victims sued a group of insurers, including State Farm and Allstate, accusing them of throwing a wrench into a tentative $4 billion deal to settle their claims.
The lawsuit filed Friday in state court in Maui targets insurers who wrote homeowners’ policies for demanding almost $2 billion from the settlement fund as reimbursement for claims paid out for destruction on the island last year. Bloomberg News reported on the proposed deal Thursday. The blazes damaged or destroyed 2,207 structures — the majority of them residential.