Allstate, Fidelity Beat FCA Suit Over Inflated Katrina Claims

By Tony Burchyns (January 29, 2015, 10:12 PM EST) -- A Texas federal judge Thursday dismissed a False Claims Act suit alleging Allstate Insurance Co., Fidelity National Financial Inc. and other insurers overstated damages for government-backed insurance claims after Hurricane Katrina, ruling the alleged fraud was already widely known through media reports, Congressional hearings and government investigations.

Independent insurance adjuster Kermith Sonnier sued Allstate, Fidelity and 21 other insurers in 2012, saying he had direct knowledge that they submitted inflated flood claims on policies backed by the Federal Insurance Administration's National Flood Insurance Program.

But U.S. District Judge Lee H. Rosenthal granted the defendants' dismissal motion Thursday, finding that Sonnier lacked...

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