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US court allows Katrina suit against State Farm

US DISTRICT Judge LT Senter in Mississippi has rejected State Farm Fire & Casualty’s motion to dismiss a whistleblower lawsuit in which Cori and Kerri Rigsby, former employees of a claims adjusting firm, alleged that the insurer and its engineering firms defrauded policyholders and the National Flood Insurance Programme by rigging engineering reports in the wake of 2005’s hurricane Katrina to say property damages were largely the result of flooding rather than wind.

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