For Rossana Valverde, whose home survived the Eaton Fire, the legal action represents hope after what she described as a lengthy battle with the insurer.
Valverde said she has spent 20 months trying to secure coverage for remediation of toxins and has not been able to return home.
"Thank God somebody has made some decisive action that's maybe going to get us paid so we can get back home," Valverde said.
County officials announced the lawsuit while criticizing State Farm's handling of wildfire-related claims.
"State Farm, you have mishandled survivors claims and State Farm, your actions have added burden and trauma that the survivors carry," Los Angeles County Supervisor Kathryn Barger said.
The county alleges State Farm engaged in unfair business practices in its response to wildfire claims.
Jesse Albert, whose home burned down in Altadena during the Eaton Fire, said he has encountered repeated challenges while working with the insurer. Albert said he has had eight adjusters assigned to his claim and has been unable to rebuild.
"When they offer me basically one third of the amount of money it costs to rebuild my house, after telling me I had enough money to rebuild my house, that's corporate policy," Albert said.
State Farm disputed the county's allegations in a statement.
"State Farm has paid more than $6.2 billion on claims related to the 2025 Los Angeles wildfires, including approximately $1 billion for smoke-related damage, and has closed about 78% of claims," the company said.
The county's lawsuit seeks restitution for wildfire victims as well as civil penalties.
"That is the big goal here, is to get resources and benefits to the community so they can rebuild their lives, rebuild their homes and recover," Assistant County Counsel Scott Kuhn said.
The county lawsuit differs from a separate legal action filed by the state. That suit focuses on penalties against State Farm, while the county's lawsuit is aimed at obtaining money for wildfire victims.