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KESSLER TOPAZ MELTZER & CHECK, LLP FILES CLASS ACTION LAWSUITS AGAINST STATE FARM FOR DENYING BUSINESS INTERRUPTION CLAIMS

Kessler Topaz Meltzer & Check, LLP (“Kessler Topaz”) has initiated multiple class action lawsuits against  State Farm Mutual Automobile Insurance Company and various other related State Farm entities (“State Farm Insurance Company”) on behalf of all persons or entities that purchased Loss of Income and Extra Expense Coverage from State Farm Insurance Company and were denied claims for business income losses incurred as a result of social distancing and/or stay-at-home orders in connection with the COVID-19 global pandemic.  The first case was filed on May 5, 2020 in the United States District Court for the Southern District of Florida and is captioned Royal Palm Optical, Inc. v. State Farm Mutual Automobile Insurance Company, et al., Case No. 9:20-cv-89749-RS.  The second case was filed on May 27, 2020 in the United States District Court for the Eastern District of Virginia (Norfolk Division) and is captioned Elegant Massage, LLC d/b/a Light Stream Spa v. State Farm Mutual Automobile Insurance Company, et al., Case No. 2:20-cv-00265.   

Any persons or entities who purchased Loss of Income and Extra Expense Coverage from State Farm and were denied business interruption or business disruption claims, are encouraged to fill out our online form or contact us today at 844-887-9500 or info@ktmc.com.

Alleged Wrongdoing in the Actions

The actions allege that in March 2020, and continuing to the present, many individuals and businesses suffered and continue to suffer financial hardship. In the midst of the COVID-19 global pandemic, states and localities across the nation issued orders that limited human interaction and required residents to stay at home. Such orders have prevented businesses from being able to operate and generate revenue.  Given the complete disruption of their businesses as a direct result of these social distancing and/or stay-at-home orders, policyholders submitted claims to State Farm Insurance Company seeking reimbursement for their lost income and other expenses under their policy’s Loss of Income and Extra Expense Coverage.

Both complaints allege that State Farm Insurance Company violated its obligations pursuant to these commercial property insurance policies by arbitrarily and without justification refusing to reimburse policyholders for loss of business income and other expenses incurred as a result of social distancing and/or stay-at-home orders in connection with the COVID-19 global pandemic.