Allstate, State Farm win dismissal in Katrina case

A federal appeals court upheld the dismissal of Allstate Corp. and State Farm Fire & Casualty Co. from a lawsuit accusing them of overbilling the U.S. government for flood damage in Louisiana related to the 2005 storm Hurricane Katrina. Wednesday’s ruling by the 5th U.S. Circuit Court of Appeals in New Orleans, however, revives the lawsuit against several other insurance companies and adjusting firms.