La. Loses Latest Forum Fight In Katrina Insurance Battle

Law360, New York (October 31, 2011, 3:18 PM EDT) -- A Louisiana federal judge on Friday refused to send to state court Louisiana's dispute with more than 200 insurers who allegedly underpaid covered property damage claims stemming from hurricanes Katrina and Rita.

The insurers had removed the lawsuit to federal court under the Class Action Fairness Act after Louisiana added class allegations on behalf of state residents who had received or would receive grants to repair hurricane-related property damage under the Road Home program, which faces a projected $1 billion shortfall.

According to Louisiana, the massive...
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