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.

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