High court will hear State Farm appeal in Katrina fraud case

AP News
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Posted: May 31, 2016 9:38 AM

WASHINGTON (AP) — The Supreme Court will consider whether to overturn a jury verdict against State Farm Fire and Casualty Co. in a whistleblower case alleging fraud against the U.S. government after 2005's Hurricane Katrina.

The justices on Tuesday agreed to hear State Farm's appeal of a lower court ruling that upheld the verdict in favor of Cori and Kerry Rigsby.

The two sisters sued on behalf of the government after they said they witnessed the insurance giant shifting Mississippi claims to federal flood insurance that should have been paid by private wind insurance.

A federal appeals court said the Rigsbys could seek additional evidence of other possible fraud.

State Farm says the case should be dismissed because its existence was leaked while it was supposed to be secret.