State Farm Agrees to Pay a $100M Settlement to the Federal Government Over Hurricane Katrina Insurance Claims
State Farm Fire and Casualty Co. has agreed to pay the federal government $100 million for potential liability over its handling of flood insurance claims after Hurricane Katrina, settling a lawsuit that two whistle blowers filed against the company more than 16 years ago.
Other terms of the settlement remained confidential in the whistle blower lawsuit filed in 2006 by former claims adjusters and sisters Cori and Kerri Rigsby, who lived in Ocean Springs at the time. State Farm also agreed to dismiss counterclaims it filed against the sisters, alleging that they breached their employment agreements and violated other laws by taking company documents while working as independent adjusters.
The cases have been dismissed with prejudice, meaning they can’t be filed again, by U.S. District Court Judge Sul Ozerden in Gulfport.
