State Farm ‘disappointed’ in Hurricane Katrina ruling

Posted on July 15, 2015

By Eric Stock

BLOOMINGTON – A State Farm spokesman said the company is reviewing its legal options after a federal appeals court upheld a ruling in a Hurricane Katrina whistleblower lawsuit.

Sisters Cori and Kerry Rigsby used State Farm for fraud following the 2005 storm, claiming the insurer deliberately shifted wind damage claims to flood damage, which is paid by the federal government. State Farm was ordered to pay the Rigsby’s $750,000 in the verdict, which the U.S. Circuit Court of Appeals in New Orleans upheld on Monday.

State Farm spokesman Justin Tomczak said the company is disappointed in the court’s ruling.

“State Farm maintains its long-held position that allegations made against the company by two former independent adjusters are groundless,” Tomczak said in a statement. “State Farm acted responsibly in handling Katrina claims – appropriately following all government guidelines.”

The court ruled the Rigsbys can seek more evidence of fraud against the federal government.

Eric Stock can be reached at [email protected].

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