Scruggs’ old partners warn company not to satisfy State Farm request

An engineering and analysis firm says it cannot comply with a State Farm Insurance Cos. subpoena in a Hurricane Katrina case because it would violate a settlement reached with the former Scruggs Katrina Group.

The suit, on which Glenda Shows is the lead plaintiff, has 21 policyholders alleging a violation of federal racketeering laws by State Farm during its post-Katrina claims-handling practices.

Originally a defendant in the suit, Forensic Analysis and Engineering Corp. reached a confidential settlement in November to be removed from the hundreds of lawsuits filed by the former SKG, a group of law firms that joined together to sue insurance companies.

Legal Newsline
3/19/8