US Supreme Court Upholds Verdict Katrina State Farm Fraud

Today, the Supreme Court unanimously upheld a jury verdict that state farm defrauded the US government. This includes manipulating reports by adjusters and engineers to limit the company’s responsibility for paying claims post Katrina. The justices rejected claims by state farm that the whistle blower case against the insurer … Should have been dismissed because its existence was leaked while it was supposed to be secret. The eight to zero ruling upholds a lower court ruling in a 2006 lawsuit brought about two whistle blowers…sisters Cori and Kerri Rigsby…under the false claims act, which lets people sue on behalf of the government over allegations it has been de-fraud. This case gave rise to other clams that state farm defrauded the national flood insurance program…and also prompted Mississippi to file its own civil fraud lawsuit.