State Farm turns tables, sues AG Hood

Three grand jury subpoenas were issued to State Farm before the agreement, which included a $5 million payment to Hood for investigative costs. A fourth was sent to State Farm in August.

“Specifically, the Fourth Grand Jury Subpoena seeks a wide array of documents from State Farm concerning State Farm’s handling of Hurricane Katrina claims, precisely the same matters that Attorney General Hood agreed would not be investigated or prosecuted pursuant to his Jan. 23 Non-Prosecution Agreement with State Farm,” the complaint says.

The complaint also notes a July letter from Hood to federal officials in Alabama that states he is engaged in “an ongoing investigation into what he believes is State Farm’s fraudulent conduct, not only toward their own policyholders but also against the National Flood Insurance Program as well.” State Farm argues the letter shows Hood’s bad faith.

Hood reopened the criminal investigation “for the purpose of harassment,” the company concludes.

Legal NewsLine
11/5/7