Court Refuses To Dismiss Class Action Lawsuit Against State Farm For Denial Of COVID-19 Claims

RADNOR, Pa., March 5, 2021 / PRNewswire / – A federal judge recently opened a class action lawsuit against State Farm Fire & Casualty Company and State Farm Mutual Automobile Insurance Company (the “State Farm Defendants”) for denying loss of business income claims (business interruption) due to COVID -19 pandemic. The case is pending The United States District Court for the Eastern District of Virginia, Norfolk Division and headed Elegant Massage, LLC (d / b / a Light Stream Spa) v State Farm Mutual Automobile Insurance Company et al., Case No. 2: 20-cv-00265 (the “Action”).

Individuals or organizations who have purchased State Farm insurance and who have been denied claims for loss of business income related to COVID-19 are asked to contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; or (888) 299-7706 (toll free); or by email to [email protected]. Further information can be found at:

The action claims that in March 2020and to date, many individuals and companies have suffered and continue to suffer from financial hardship. Amid the global COVID-19 pandemic, states and locations across the country issued orders restricting human interaction and urging residents to stay home. Such contracts have prevented companies from operating and generating revenue. To protect against unexpected business interruptions, many individuals or organizations have taken out commercial property insurance policies that guarantee policyholders reimbursement for loss of income and other costs in the event that their business is ceased. Faced with the total disruption of their business as a direct result of this social distancing and / or the stay-at-home order, policyholders filed claims with the State Farm Defendants for reimbursement of their lost income and other expenses under the applicable terms of their policy.

The lawsuit alleges that the State Farm Defendants arbitrarily and without justification breached their obligations under these commercial property insurance policies by refusing to reimburse policyholders for loss of business income and other costs incurred due to social distancing and / or residency Orders were made at home in connection with the global COVID-19 pandemic.

The Honorable Raymond A. Jackson largely denied the State Farm Defendants’ motion to dismiss the lawsuit, believing that the plaintiff had produced sufficient evidence to make a breach of contract and fair dealing claim close.

Kessler Topaz Meltzer & Check, LLP, pursues class action lawsuits in state and federal courts across the country. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has collected billions of dollars on behalf of institutional and individual investors The United States and all over the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). Further information on Kessler Topaz Meltzer & Check, LLP can be found at


Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(888) 299-7706 (toll free)
[email protected]

SOURCE Kessler Topaz Meltzer & Check, LLP

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