The Farmers Insurance scandal is a story of corruption and greed. The company was founded in 1928 by two farmers, John G. Tyler and William S. Polk. They started out with just $600 between them and grew the company into a multi-million dollar business. However, behind the scenes, the company was rife with fraud and corruption.
In the early 2000s, an investigation by the Los Angeles Times uncovered a massive scheme by Farmers Insurance to defraud its customers. The company was systematically overcharging customers, using false advertising to lure new customers in, and then denying valid claims. In some cases, Farmers would even hire private investigators to stalk and harass policyholders who filed claims.
As a result of the scandal, Farmer's Insurance was hit with multiple lawsuits and ordered to pay out millions of dollars in damages. The company's reputation was badly damaged, and it took years for Farmer's to recover from the scandal.