State Farm Spars With Relators In High Court Over FCA Seal

By Daniel Wilson (November 1, 2016, 5:19 PM EDT) -- Relators accusing State Farm of fraudulently misclassifying insurance claims faced off Tuesday with the insurer in the U.S. Supreme Court, arguing over the severity of sanctions they should face for breaking the seal on False Claims Act suits, from discretionary penalties to automatic dismissal.

Despite the intentional press leak by the relators' former counsel — the now-disbarred Dickie Scruggs, who was convicted of bribing a judge in a different case — of information about the qui tam suit, in violation of the FCA's automatic seal requirement, relators and former insurance adjusters Cori and Kerri Rigsby have faced effectively zero consequences, Kathleen...

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