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Justices uphold Katrina fraud verdict against State Farm

A unanimous Supreme Court has upheld a jury verdict that State Farm Fire and Casualty Co. committed fraud against the federal government after 2005’s Hurricane Katrina.

The justices on Tuesday rejected claims by State Farm that the whistleblower case against the insurer should have been dismissed because its existence was leaked while it was supposed to be secret.

Justice Anthony Kennedy wrote for the court in upholding an appellate ruling that there is no requirement in federal law that the lawsuit be dismissed.

Sisters Cori and Kerry Rigsby filed the fraud lawsuit on behalf of the government after they said they witnessed State Farm shifting Mississippi claims to federal flood insurance that should have been paid by private wind insurance.

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