A federal judge in Pennsylvania has dismissed a class-action lawsuit against State Farm. The homeowners in the suit alleged that the insurance giant limited compensation by improperly using a “new construction” setting in its software when calculating property damage claims.
The dismissal, handed down on Tuesday, closes a legal challenge where homeowners accused State Farm of adjusting claim settlements in a way that unfairly reduced payouts for property repairs. The plaintiffs argued that State Farm’s software, in certain instances, was programmed in a manner that undervalued the actual cost of returning damaged properties to their pre-loss condition. Details on the judge’s specific reasoning for the dismissal were not immediately released. Further legal actions by the plaintiffs remain theoretically possible but are currently uncertain.
