Supreme Court upholds State Farm fraud verdict

Posted on December 6, 2016

By Adam Studzinski

WASHIGNTON – The U.S. Supreme Court has upheld a jury verdict saying State Farm committed fraud against the federal government after Hurricane Katrina in 2005.

The court rejected claims by the Bloomington-based company that a whistleblower should have been dismissed.

Two sisters, Cori and Kerry Rigsby, filed a fraud lawsuit on behalf of the government after they said they witnessed State Farm shifting Mississippi claims to federal flood insurance. The claims should have been paid by private wind insurance.

A statement from State Farm said the company is “greatly disappointed” and is reviewing legal options.

Adam Studzinski can be reached at [email protected].

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