21 policyholders filed a lawsuit yesterday alleging that State Farm Mutual Automobile Insurance Co. violated the federal Racketeer Influenced Corrupt Organizations Act (RICO) by defrauding them of approximately $4 million in insurance benefits related to Hurricane Katrina claims by producing false inspection reports.
The 101-page complaint, filed in the U.S. District Court for the Southern District of Mississippi, alleges that State Farm conspired with adjusting and engineering firms to deny Hurricane Katrina claims that should have been paid by the insurer. Read more…
