Key facts
- First Street's climate risk scores are alleged to be speculative and contradict official data like FEMA's flood hazard classifications.
- The lawsuits claim First Street's scores influence purchasing decisions, offers, insurance quotes, and property valuations.
- Homeowners reportedly have no recourse to correct disputed climate risk scores from First Street.
- Florida is seeking civil penalties ranging from $10,000 to $15,000 per violation.
- First Street's data is displayed on real estate listing portals such as Zillow, Redfin, and Realtor.com.
Attorneys general in Florida and Nebraska have filed lawsuits against climate risk analytics firm First Street, alleging that its property-level climate risk scores are inaccurate, misleading, and harm homeowners. The Florida lawsuit, filed in Polk County, accuses First Street of violating the state's Deceptive and Unfair Trade Practices Act. Attorney General James Uthmeier stated that First Street's scores, which assess flood, wildfire, wind, heat, and air-quality risks, often contradict official data from agencies like FEMA and are based on undisclosed choices.
Similarly, Nebraska Attorney General Mike Hilgers' lawsuit claims First Street's scores depress home prices and stall sales by "spooking" buyers with elevated risk assessments. Both lawsuits allege that First Street's models contain significant uncertainties, do not adequately disclose limitations, and that homeowners have no clear path to correct disputed scores. The states are seeking to prevent First Street from continuing these practices and are asking for financial relief, including consumer redress and civil penalties.