Off Topic: State Farm Accused of Katrina Racketeering
An AP newswire article, via MSNBC, reports that:
State Farm Fire & Casualty Co. engaged in a "pattern of racketeering" by manipulating engineering reports on Hurricane Katrina damage so the company could deny policyholder claims, lawyers for a group of Mississippi homeowners allege in a lawsuit filed Wednesday.More here.
The federal suit against State Farm represents a new legal strategy for attorney Richard "Dickie" Scruggs, who has played a prominent role in challenging the insurance industry for its handling of Katrina claims.
Hundreds of homeowners in Mississippi and Louisiana have sued their insurers for denying their claims after the Aug. 29, 2005, storm. The suits typically accuse insurers of bad faith and breach of contract for refusing to pay for damage from Katrina's storm surge.
Image source: Steve Helber / AP file / MSNBC
posted by Fergie @ 6/20/2007 06:41:00 PM
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