State Farm Qui Tam Suit Over Flood Claims Survives

By Ben James

Law360, New York (August 12, 2009, 4:21 PM ET) -- A federal judge has refused to throw out a False Claims Act suit brought by two relators accusing State Farm Fire & Casualty Co. of inflating and overpaying flood damage claims — for which State Farm is reimbursed by the federal government — to offset claims for wind damage.

However, the judge granted State Farm summary judgment on the relators' claim that the insurer terminated them in violation of the FCA's whistleblower provision.

Judge L.T. Senter Jr. of the U.S. District Court for the Southern District...
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