McAllister (of Nutt McAllister) sues Scruggs over the Rigsby sisters

The suit, which was filed in the CIrcuit Court of Lafayette County earlier this month, alleges that Scruggs hired the Rigsbys as consultants, that she specifically raised with Scruggs that it would be unethical and improper to pay them relating to State Farm work given that they had worked as State Farm contract adjusters.  It alleges that Scruggs fraudulently represented to her that he was using them for non-State Farm work, and that the contract with the Rigsbys led to the disqualification of all SKG law firms, including Nutt McAllister, which had a 35% stake in SKG.  She alleges that SKG lost State Farm policy holders who settled claims in the range of $100,000,000, which cost her $5,000,000 in fees.  She closes by reserving her right for the case to be sent into arbitration (which is I’m sure where it will disappear shortly).

NMC
4/25/11