Home » NEWS » Insurance » Appeals court upholds Katrina insurance fraud verdict

Appeals court upholds Katrina insurance fraud verdict

JACKSON — Whistleblowers who sued State Farm Fire and Casualty Co. can seek more evidence of fraud against the U.S. government after 2005’s Hurricane Katrina.

The 5th U.S. Circuit Court of Appeals upheld Monday a jury verdict in favor of Cori and Kerry Rigsby. The two sisters sued on behalf of the government after they said they witnessed the Illinois insurance giant shifting Mississippi claims to federal flood insurance that should have been paid by private wind insurance.

The New Orleans court says the Rigsbys should get additional discovery into other possible instances besides the Biloxi case that a jury ruled for in 2013.

The three-judge appeals panel is rejecting State Farm’s claim that the case should be dismissed because its existence was leaked while it was supposed to be secret.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Associated Press

Leave a Reply

Your email address will not be published. Required fields are marked *

*