State Farm Hit With Racketeering Lawsuit
The Houston Chronicle reports:
State Farm Fire & Casualty Co. engaged in a “pattern of racketeering” by manipulating engineering reports on Hurricane Katrina damage so the company could deny policyholder claims, lawyers for a group of Mississippi homeowners allege in a lawsuit filed Wednesday.
The federal suit against State Farm represents a new legal strategy for attorney Richard “Dickie” Scruggs, who has played a prominent role in challenging the insurance industry for its handling of Katrina claims.
Hundreds of homeowners in Mississippi and Louisiana have sued their insurers for denying their claims after the Aug. 29, 2005, storm. The suits typically accuse insurers of bad faith and breach of contract for refusing to pay for damage from Katrina’s storm surge.
If you have been the victim of insurance bad faith, please call Keating, O’Gara, Nedved & Peter at 888/234-0621 or fill out the contact form on this site. Your first consultation is free and we handle cases on a contingency fee basis.


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