5th Circ. Asked To Widen State Farm Katrina FCA Suit

By Bibeka Shrestha (March 5, 2014, 5:42 PM EST) -- After an initial victory, two whistleblowers on Tuesday petitioned the Fifth Circuit for a significant expansion of their lawsuit accusing State Farm Fire & Casualty Co. of fraudulently shifting its Hurricane Katrina losses to the National Flood Insurance Program, and the insurer pressed to reduce a treble damages award in the False Claims Act suit.

Relators Cori and Kerri Rigsby told a Mississippi federal court that they would take the epic battle to the Fifth Circuit to challenge its ruling that the sisters could not open discovery into whether State Farm committed widespread fraud against the National Flood Insurance Program....

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