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L.A.’s trailblazing home builder is the latest to leave California

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L.A.’s trailblazing home builder is the latest to leave California

One of Los Angeles’ most influential home builders, KB Home, is relocating its headquarters out of state, becoming the latest high-profile firm to do so.

The company, which has been based in Los Angeles since 1963 and helped build its sprawling suburbs, is moving its main office to the Phoenix metropolitan area by spring 2027, in part to reduce costs and place its employees in a more affordable housing market.

KB Home touted Arizona’s business-friendly environment as a reason for the move, but said it still plans to maintain six operating divisions in California.

The move to Arizona will help accelerate KB Home’s growth and streamline operations, Robert McGibney, president and chief executive of KB Home, said in a news release last week.

“This move brings our teams together in a more collaborative environment, and Phoenix is the right place to do it,” McGibney said.

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The company has deep ties to California, with more than 100 projects and tens of thousands of homes across the state. KB Home has opened nine housing communities in Southern California in the last six months and plans to open 10 more by the end of 2026.

The company’s shares, which have been falling this year amid concern about the property market, have climbed around 1% since it made the announcement late Wednesday. They closed little changed Tuesday at $51.93.

KB Home got its start in Detroit in the 1950s and briefly shifted operations to Arizona before settling in California by 1963. The company, which gets its name from the last names of its founders, Donald Bruce Kaufman and Eli Broad, rode the boom and helped shape the growth of Southern California.

KB Home quickly emerged as one of the top builders of affordable homes in the country, starting in the post-World War II boom, when growing families across the country were leaving crowded cities for the promise of rapidly emerging suburban neighborhoods such as the San Fernando Valley in Los Angeles.

With first-time buyers as their intended customers, the company’s innovations included lowering prices by building homes on slabs, instead of digging costly basements. It pioneered providing financing for buyers and 10-year limited warranties on their homes.

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Broad became one of LA.’s most influential civic leaders, using his multibillion-dollar fortune, political clout and forceful personality to spur advancements in the public sphere, particularly in the arts.

Eli Broad stands inside the Broad, a contemporary art museum on Grand Avenue in Los Angeles, in 2015.

(Genaro Molina / Los Angeles Times)

He helped guide the redevelopment of Bunker Hill in downtown Los Angeles after it was cleared for urban renewal, and it was there that he built perhaps his greatest legacy: his namesake Broad Museum, which houses the extensive private contemporary art collection that he and his wife, Edythe, accumulated.

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As a downtown booster, he and then-Mayor Richard Riordan were widely credited with getting the Walt Disney Concert Hall completed in 2003, raising more than $200 million to get the stalled Frank Gehry-designed project back on track.

In the late 1970s, he became the founding chairman of the Museum of Contemporary Art, and he bailed it out of a financial scandal three decades later with a $30-million grant.

KB Home’s California exit is the latest in a corporate exodus from the state. Some companies have relocated to avoid high taxes and strict regulations that complicate doing business in the state. The move has often been done to cut costs and improve profitability.

Two other California-bred companies connected to real estate, Realtor.com and Public Storage, announced similar moves to Texas in February.

Realtor.com, a real estate services company, was drawn to the Lone Star State for its unparalleled housing growth and affordable living, according to a news release. Public Storage, the largest self-storage business in the country, announced a similar move, citing interest in Texas’ growing talent and innovation.

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The Golden State has remained the fourth-largest economy in the world, even as steep taxes and stringent environmental regulations push some firms to leave. Powerful companies across business sectors have expressed discontent with the state’s business environment.

Tesla and financial services firm Charles Schwab left the San Francisco Bay Area in 2021. Elon Musk’s SpaceX and X exited the state in 2024, along with Chevron, the oil giant that was started in California.

California has also lost residents, who are fleeing high housing costs for more affordable states such as Arizona, Nevada, Oregon, Washington and Texas.

California has led the nation in net out-migration for six consecutive years, according to U-Haul data. Los Angeles County lost 54,000 residents from 2024 to 2025, partially due to continued out-migration to other states.

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Ford sues L.A. lemon law firm alleging ‘utter fabrications’ inflated fees by 7,000%

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Ford sues L.A. lemon law firm alleging ‘utter fabrications’ inflated fees by 7,000%

Ford Motor Co. is suing a prominent Los Angeles lemon law firm for allegedly inflating their fees by as much as 7,000%, the company’s latest attempt to crack down on California attorneys who it says are exploiting the state’s unique law to protect consumers from defective cars.

Quill & Arrow, a personal injury firm that represents drivers suing over so-called “lemons” — vehicles with significant, unfixable manufacturing flaws — has long been a thorn in the side of Ford. Since 2021, Ford said its has paid them more than $100 million, roughly half in attorney fees.

That profit, Ford alleges in a federal lawsuit filed Thursday, came from billing records that were “utter fabrications.”

Quill & Arrow used an overseas “army” of low-paid, non-lawyers to help file thousands of lemon lawsuits and then pretended the work was done by California attorneys, who billed as much as $950 per hour, Ford alleged in its complaint.

Ford claims that the bulk of the work was actually done by non-lawyers in countries such as Mexico and the Philippines, who got paid as little as $13 per hour.

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Quill & Arrow was founded in 2019 by attorneys Kevin Jacobson and Jonathan Shirian, according to the firm’s website, which touts recovering $500 million in lemon law payouts. The partners called Ford’s lawsuit “nothing more than an attempt to silence firms who would dare to hold them responsible and seek justice for consumers.”

“It grossly mischaracterizes the facts and the claim that Quill & Arrow created fabricated attorney billing records is absurd,” the firm said in a statement.

California’s lemon law, considered one of the strongest consumer protections in the nation, allows drivers to get a refund or replacement of a broken car if the manufacturer can’t fix it. If the driver is not satisfied, they can sue.

If the driver wins, the law allows attorneys to collect their fees from the car maker — rather than take a percentage of the client’s winnings, as is common in personal injury cases. This fee structure, Ford argues, has turned the law into a bonanza for plaintiff attorneys. The longer the case drags on, the company argues, the more the law firm can reap in profit.

Ford alleges the firm intentionally slowed down its clients’ cases to drive up their billable hours, instructing drivers not to communicate with Ford and pushing them toward filing a lawsuit.

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“California’s Lemon Laws are in need of reform and the courts need to exercise more oversight, given the fraud we continue to expose,” said Doug Lampe, counsel at Ford, in a statement. The law is “being blatantly abused by the lemon law plaintiffs lawyers, the bar is not policing its own and the courts need to monitor fee awards with far more skepticism and scrutiny.”

The cases, he said, “have become about the lawyers for the lawyers.”

Lemon law cases have exploded in California in the last decade from about 4,500 cases in 2015 to roughly 30,000 in 2024, according to an analysis from the Assembly Judiciary. These cases, officials warned, “are poised to cripple the entirety of California’s civil justice system.”

In 2024, the legislature tightened the state’s lemon law, requiring additional steps before a driver could sue. The bill seems to have put little dent in the caseload: Lemon lawsuits surged to record levels the following year.

Ford’s lawsuit marks the second attempt by one of America’s largest car manufacturers to go on the offense against lemon law attorneys in Southern California.

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Ford sued a cohort of local lemon law firms in May 2025, accusing attorneys of collecting at least $100 million in “phantom legal fees” by billing for hours they never worked. The case, which was brought under the Racketeer Influenced and Corrupt Organizations Act, or RICO, alleged lawyers worked together to file a flurry of fraudulent cases with billable hours that defied logic.

A partner at Knight Law Group, an L.A.-based lemon law firm, once billed an “ostensibly heroic but physically impossible” 57.5-hour workday, Ford alleged.

Knight Law Group denied inflating their billing, calling the suit a “thinly veiled attempt to silence firms who would dare to hold them responsible and seek justice for consumers.”

A judge threw out the suit in March on the grounds that lawyers were protected under the 1st Amendment from being sued for the content of their lawsuits unless the case was proved fraudulent. Ford says it plans to appeal.

After Quill found about the Knight Law Group case, Ford alleged, Quill dedicated a team to “scrubbing” their own timesheets of “impossible time entries.”

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Ranch lovers can soon travel with a TSA-friendly kit of the popular American dressing

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Ranch lovers can soon travel with a TSA-friendly kit of the popular American dressing

Ranch dressing is having a moment thanks to the World Cup and Kraft is ready to meet it.

The company said Thursday that it is working on a “TSA Compliant Ranch” for those looking to travel with the quintessentially American condiment. The announcement follows the influx of social media videos showing international soccer fans sampling the dressing for the first time.

“Some visitors leave with souvenirs. Others leave with America’s favorite dressing,” Kraft wrote in a caption accompanying an AI image of a TSA-approved clear bag packed with ranch dressing packets posted to social media. The image showed the bag — complete with a luggage tag resembling a ranch dressing bottle — placed in an airport security screening bin along with other travel essentials.

Additional details will be announced later, the company said.

TSA has also leaned into ranch’s apparent newfound popularity among international travelers, providing some helpful tips (and warnings) on social media.

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“If you’re visiting for a very large sporting event & you happen to discover RANCH while you’re here… pls pack it in your CHECKED BAG on your way home,” the agency posted on Instagram Tuesday. It also asked travelers to “avoid chugging your ranch outside security” lines.

“Who knew dip-lomacy could be achieved through addressing the obvious: ranch is the king of condiments,” TSA wrote in the caption accompanying its carousel of humorous ranch-related quips. “If you’re traveling within the U.S., make sure to keep your carry-on sauces to 3.4 oz or less and place any larger containers in your checked bags.”

“Some heroes wear capes. Others bring ranch,” it added.

According to 1987 Times reports, ranch dressing was invented by Steve Henson, who opened the Hidden Valley Guest Ranch in Santa Barbara in the mid-1950s with his wife, Gayle. The unnamed condiment originally mixed herbs and spices with buttermilk and mayonnaise and its popularity with guests led to it being jarred so they could take some home. The more travel-friendly powdered form followed.

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Landmark downtown apartment tower faces foreclosure

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Landmark downtown apartment tower faces foreclosure

A landmarked downtown Los Angeles apartment building designed by famed Los Angeles architect John Parkinson is on the market as its owners face foreclosure.

Residences in the Metropolitan, a 10-story tower built in 1913, are nearly filled with tenants but its ground floor retail spaces on Broadway and 5th Street are unoccupied, as are other street-level stores in downtown’s Historic Core.

The historic building was once considered one of the best in the city and is owned by the Fallas family, which operated a chain of value-priced clothing stores based in Gardena including one called Fallas Paredes in the Metropolitan.

Fallas-Paredes at 449 S. Broadway, Los Angeles, CA 90013.

(Google Maps)

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Around 2011, Michael Fallas, who once worked in family’s downtown store as a stock boy, converted the upstairs floors from offices to apartments while continuing to operate Fallas Paredes. The store closed more than five years ago in the wake of a 2018 filing by its parent company for Chapter 11 bankruptcy protection.

Earlier this month in state Superior Court, a special servicer representing Fallas’ lender asked for a judicial foreclosure of the property, alleging that Fallas had stopped making payments on a $32 million loan dating to 2017. After leasing the property for years, Fallas bought the building in the 1990s.

Fallas didn’t respond to requests for comment.

The location of the Metropolitan where the buildings stands was hailed in a Times story in 1912, saying “it is regarded by many realty men as the most valuable piece of real estate in Los Angeles.”

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The building today is recognized as a city historic-cultural monument because “Broadway became the commercial center of the Southland, a title it retained until well after World War II,” with its development, the city said. One of the architects who designed the Metropolitan in the Beaux-Arts style was John Parkinson, who is credited with designing such well-known local structures as City Hall, the Los Angeles Memorial Coliseum and Union Station.

Notable tenants in the Metropolitan have included the Los Angeles Public Library, Owl Drug Co., variety store J.J. Newberry and real estate company Janns Investment Co., which sold the land where UCLA is built and developed Westwood Village, among other Los Angeles neighborhoods.

In recent years, the buildings around the Metropolitan have struggled to keep retail tenants after a spurt of residential conversions of historic buildings starting in the early 2000s brought commerce to the neighborhood. Many downtown businesses have struggled since the pandemic reduced occupancy in offices downtown and reduced the flow of visitors.

“The lack of bodies on the street is generally hurting downtown, and that’s one of the reasons that has building has problems,” said downtown real estate broker Hal Bastian, who lives in the Historic Core.

There are close to 1,000 residential units in historic buildings at the intersection of Broadway and 5th Street, Bastian said, but all the ground floor stores are closed. Drug stores there suffered substantial losses from shoplifting he said, and now, “our challenge on Broadway is leasing.”

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The 88 apartments in the Metropolitan are 91% rented, according to a listing for the property by the Zacuto Group, which also touts its roof deck with pool, fitness center and barbecue grills. No sale price is set.

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