Judge Tosses La. AG's Suit Against Allstate, Others

By Jocelyn Allison (December 17, 2008, 12:00 AM EST) -- A federal judge has dismissed a lawsuit accusing Allstate Insurance Co., State Farm Fire & Casualty Co. and other insurers of conspiring to lowball payments to claimants in Louisiana during and after Hurricane Katrina.

Judge Jay C. Zainey of the U.S. District Court for the Eastern District of Louisiana on Wednesday sided with insurers who claimed the suit failed to state a claim under the Louisiana Monopolies Act, granting their motion to dismiss the case. He had not filed an opinion with the order as of Wednesday afternoon.

Former Louisiana Attorney General Charles C. Foti Jr. filed the case in November...

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