Mississippi Katrina Suits Filed by Scruggs Against State Farm Settled

January 15, 2009

Dozens of Hurricane Katrina-related lawsuits filed by Richard “Dickie” Scruggs for policyholders against State Farm Fire and Casualty Co. have been settled.

Terms of the settlements are confidential.

Officials with Bloomington, Ill.-based State Farm say the company is pleased it was able to resolve the disputes.

Scruggs is serving a federal prison term for bribing a state judge. His Katrina lawsuits were turned over to a Texas law firm, which reached the settlements with State Farm.

In one of the lawsuits, Scruggs claimed that State Farm and its bank engaged in a criminal enterprise with vendors to deprive policyholders of money owed for wind damage from Hurricane Katrina. State Farm denies the allegation.

Court records show the plaintiffs asked the case be dropped.


Information from: The Sun Herald, http://www.sunherald.com

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