State Farm sued for Racketeering

Posted on June 22, 2007 by Thomas Walker

The Wall Street Journal Law Blog reported yesterday that Dickie Scruggs sued State Farm in federal court in Mississippi, accusing the company of engaging in a “pattern of racketeering” by manipulating engineering reports on Hurricane Katrina damage so the company could deny policyholder claims. Scruggs is already pursuing litigation against the company, but this is the first lawsuit alleging violations of the civil Racketeer Influenced Corrupt Organization Act, or RICO.  See the WSJ Blog site for a link to the 101-page complaint.

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