Supreme Court to hear State Farm case over Hurricane Katrina fraud claim

The U.S. Supreme Court on Tuesday agreed to hear an appeal by State Farm contesting a jury finding that the insurance company defrauded the federal government when assessing damage caused by Hurricane Katrina in 2005 along the Gulf of Mexico coast.

The court will review a 2015 ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals upholding the verdict in a suit brought under the federal False Claims Act, which lets people sue over allegations that the government has been defrauded.

The court will consider a lawsuit brought by sisters Cori and Kerri Rigsby, former claims adjusters who worked with State Farm after the hurricane

Reuters
5/31/16