Once Upon a Profit — The Secret McKinsey Fairy Tale
How a corporate supervillain convinced the industry to turn criminal
Photo illustration
State Farm’s own files tell the story.
More than 900 Oklahomans allege State Farm deliberately cut payouts on their roof claims, or denied them completely, after hail and wind storms. The State of Oklahoma has sued too.
Sources: J.C. Hallman, The Nation, KJRH, InsuranceNewsNet. State Farm disputes the allegations.
“The Rates of Wrath”
Independent investigative reporting by J.C. Hallman
In the news
Selected coverage, commentary and video
- More State Farm ‘hot documents’ made public in Oklahoma insurance lawsuits
- 7 key takeaways from newly released internal documents
- Did State Farm Turn Accenture’s “Industry Best” Into a Blueprint for Replacing Almost No Roofs?
- Why is Oklahoma suing State Farm and Allstate? Attorney General Gentner Drummond explains the allegations
What the record shows so far
Every figure below comes from court filings or reporting on them. None of the allegations has been decided in court.
They sure weren’t being a good neighbor to us.
Joseph M. Watt
Retired Chief Justice of the Oklahoma Supreme Court, on his family’s State Farm roof claim. He now serves as senior counsel in the Attorney General’s office. Oklahoma Watch
June 2020
An internal plan to pay less on roofs
State Farm launched an effort in Texas to cut what it paid on wind and hail roof claims, then extended it to Oklahoma within six months. Internal emails compared its rate of full roof replacements with an "industry average" from consulting data its lawyers later could not verify in court. State Farm has defended its practices as ordinary business operations.
Source: J.C. Hallman, The Nation, citing State Farm documents
2020 to 2021
$1.4 billion less paid out
Internal documents credit the effort with $1.4 billion in reduced claim payments. Before it, State Farm replaced 5.6 roofs for every roof it repaired. Afterward, it replaced 2.1.
Source: J.C. Hallman, The Nation, citing State Farm documents
2020 to now
More than 900 Oklahomans suing
More than 900 Oklahomans allege State Farm underpaid or denied valid weather claims. In June 2026 the Attorney General sued under the Oklahoma Consumer Protection Act and the state's racketeering law. In September, a judge denied State Farm's motion to dismiss that case.
Sources: The Nation, KJRH, InsuranceNewsNet, Merlin Law Group on claim figures and the motion to dismiss
August 2026
The company's files start coming out
A Comanche County judge ordered State Farm to produce 800,000 documents. The company marked every one confidential, and the judge ruled it could not. In August, 31 documents totaling 159 pages were ordered public. In September, an Oklahoma County judge ordered 11 more made public in the Hursh case.
Sources: The Nation, InsuranceNewsNet
We now pay really low and customers fight to get what we owe them …
What happens next
Court dates change. We update this list as rulings come in.
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In 6 days
Cleveland County
Hearing on State Farm’s motion to disqualify the State’s outside counsel
In the Attorney General's case against State Farm, the company has asked the court to remove the outside law firm working with the State, arguing it has a conflict of interest and a financial stake in the outcome. The judge will hear both sides.
Recent rulings
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West v. State Farm is expected to go to trial
34 days away
Hursh v. State Farm
The case that brought this into public view
A hailstorm damaged Billy and Lacy Hursh’s Broken Arrow home in October 2023. State Farm offered about $1,400 and denied their appeal. The family borrowed against their home to pay about $22,000 for a new roof. In April 2025 they sued, alleging bad faith. Their case set off a wave of similar lawsuits, and the Attorney General tried to join it in December 2025. When the Oklahoma Supreme Court ruled he couldn’t, he filed the State’s own case. State Farm denies any wrongdoing.
But it made me feel like a sucker.
Read J.C. Hallman’s story on the case
Sources: FOX 25, NonDoc, Oklahoma Watch, via The Rates of Wrath
FAQs
We answer common questions plainly, with a source for every fact, and include State Farm’s responses where it has given them.
What is State Farm accused of?
Homeowners and the State allege that starting in 2020, State Farm ran an internal program to cut payouts on wind and hail roof claims, replacing fewer roofs and closing more claims without payment. Company figures filed in court show 26,089 of 117,019 Oklahoma wind and hail claims closed with no payment from 2019 to 2025.
The State’s lawsuit alleges violations of the Oklahoma Consumer Protection Act and the state’s racketeering law. No court has ruled on these allegations.
Sources: Merlin Law Group, InsuranceNewsNet
What has State Farm said?
State Farm says it strongly disagrees with broad claims that mischaracterize how it serves customers or evaluates damage, and that it has paid more than $1 billion to Oklahoma customers for wind and hail damage. It has defended its claims practices as ordinary business operations.
My roof claim was denied or underpaid. What can I do?
Ask your insurer for your claim file and the adjuster’s estimate in writing, and keep every letter, email and photo. You can file a complaint with the Oklahoma Insurance Department at 800-522-0071. You also have the right to talk with an attorney of your choosing.
This site can’t tell you whether you have a case.
What are the “secret documents”?
They are State Farm’s internal records, produced in the lawsuits under court orders that kept them confidential. A Comanche County judge ordered the company to produce 800,000 documents, then ruled it could not mark all of them confidential. The first 159 pages became public in August 2026. In September, an Oklahoma County judge ordered 11 more released in Hursh v. State Farm.
Sources: The Nation, InsuranceNewsNet
Oklahomans are paying rising homeowners insurance premiums yet receiving less protection in return.
Attorney General Gentner Drummond
Announcing the State’s lawsuit, June 24, 2026. Press release
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Who we are
State Fraud OK puts the reporting, court records and news coverage of the State Farm roof claim cases in one place, so Oklahomans can see the whole picture and judge it for themselves.
The site is paid for by Whitten Burrage, an Oklahoma City law firm that represents homeowners suing State Farm and is the State’s outside counsel in the Attorney General’s case.