Insurance firm found guilty of Katrina-related fraud

GULFPORT — A federal jury has found State Farm Fire and Casualty Co. committed fraud against the federal government and submitted a false record to support fraud after Hurricane Katrina.

The Sun Herald reports the verdict came after the eight-member jury deliberated for three hours Monday in a whistleblower lawsuit. The decision potentially opens for examination thousands of post-Katrina flood claims State Farm adjusted and paid before reimbursement by the National Flood Insurance Program.

Before opening their case to other claims, former insurance adjusters Kerri and Cori Rigsby first had to prove State Farm committed fraud involving one property.

The newspaper reports State Farm is expected to file a motion asking the federal judge in the case to overturn the verdict or grant a new trial.

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