The Washington Post
Insurer Accused of Racketeering
State Farm Fire & Casualty engaged in a “pattern of racketeering” by manipulating engineering reports on Hurricane Katrina damage so the company could deny claims from a group of Mississippi homeowners, lawyer Richard Scruggs alleged in a new lawsuit. A State Farm representative said the lawsuit was nothing more than the lawyer’s “PR machine working overtime.”
Lawsuits over Katrina-related insurance claims typically accuse insurers of bad faith and breach of contract.