State Farm Will Pay $100 Million to Feds Over Hurricane Katrina Insurance Claims

Rigsby Sisters blew whistle on State Farm over False Claims Act violations after Hurricane Katrina.
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 whistleblowers filed against the company more than 16 years ago. Other terms of the settlement remained confidential in the whistleblower 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 agre...