Lincoln, Neb. – State Attorney General Mike Hilgers has taken legal action against First Street, a data‑analytics company that provides climate‑risk assessments to lenders and investors. In a complaint filed Tuesday, Hilgers claims the firm’s predictions are misleading, causing a decline in Nebraska’s real‑estate market and making it harder for homeowners to sell their properties.
Allegations of inaccurate climate scoring
According to the lawsuit, First Street’s risk scores are based on faulty information and are presented without disclosure that they differ from federal government data. Hilgers argues the company keeps its methodology secret, preventing homeowners and lenders from verifying the accuracy of the scores.
“First Street is making a profit at the expense of the value of Nebraskans’ homes,” Hilgers said in a statement. “The deceptive behavior has to stop.”
Impact on Nebraskan homeowners
The attorney general’s office asserts that the inflated risk assessments have depressed property values statewide, leading to higher costs for families trying to sell or refinance homes. By labeling large portions of the state as high‑risk for climate‑related events, the firm allegedly creates a perception of danger that is not supported by the data.
Hilgers’ lawsuit seeks a court order requiring First Street to disclose its scoring methodology, correct any inaccurate data, and cease the distribution of misleading climate risk information to lenders operating in Nebraska.
Broader context
The case arrives amid growing scrutiny of climate‑risk models used by financial institutions. Critics argue that some models may overstate the likelihood of extreme weather events, potentially harming local economies and property owners. Supporters of the models contend they provide necessary foresight for long‑term investment planning.
Nebraska’s agricultural and real‑estate sectors have long been central to the state’s economy, and any factor that could depress home values draws close attention from policymakers. Hilgers’ action reflects a broader effort by state officials to ensure that data used in financial decisions is accurate and transparent.
Next steps
The lawsuit will proceed through the state court system, where First Street will have an opportunity to respond to the allegations. If the court rules in favor of the attorney general, the decision could set a precedent for how climate‑risk data is presented to lenders across the Midwest.
Both parties have indicated they expect a lengthy legal process, with the outcome likely influencing future regulatory discussions about climate‑risk disclosures and consumer protection in the financial sector.
Original reporting: KLKN-TV – News, Weather and Sports for Lincoln, Nebraska — read the source article.
