U.S. Supreme Court Rules Against Insurer In Katrina Fraud Case

 Tuesday, December 6, 2016


The Supreme Court on Tuesday upheld a jury verdict that found State Farm defrauded the U.S. government when the insurance company assessed damage caused by Hurricane Katrina along the Gulf of Mexico coast in 2005. The court ruled 8-0 in rejecting State Farm’s challenge to a 2015 lower court ruling upholding the verdict in a 2006 lawsuit brought by two whistleblowers, sisters Cori and Kerri Rigsby, under the False Claims Act, which lets people sue on behalf of the government over allegations it has been defrauded.
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