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Katrina Fraud Suit Against Insurers Mostly Revived

By Christie Smythe (February 19, 2009, 12:00 AM EST) -- A whistleblower suit alleging that more than a dozen insurers and adjusters defrauded the federal government by falsely classifying wind damage as flood damage following Hurricane Katrina can proceed against all but two of the defendants — Allstate Insurance Co. and State Farm Fire and Casualty Co. — a federal appeals court has ruled, partially reversing the dismissal of the case by a lower court....

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