Katrina-Whistleblower Lawsuit - KLFY News 10

Katrina-Whistleblower Lawsuit

Posted:

GULFPORT, Miss. (AP) - State Farm Fire and Casualty Co. has asked a judge to void a jury's finding that the company defrauded the government involving a policyholder claim after Hurricane Katrina. 

Motions filed in U.S. District Court in Gulfport, Miss., also seek a new trial 

The verdict came in April in a whistleblower lawsuit against the Illinois- based insurer. 

The lawsuit was filed by Cori and Kerri Rigsby of Ocean Springs, Miss., who once worked for Alabama-based E.A. Renfroe, a company State Farm contracted to provide damage assessments after the August 2005 hurricane. 

The jury found State Farm avoided covering a policyholder's wind losses by blaming damage on storm surge, which is covered by federal flood insurance. 

State Farm was ordered to repay $250,000 to the government. Other damages are to be determined.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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