Whistleblower Assisting Scruggs’ War on Insurers

Whistleblower Assisting Scruggs’ War on Insurers

17 March 2006 · No Comments

According to this wire story, it sounds like Scruggs is getting some assistance in his fight against insurers and their handling of Katrina claims:

A high-profile litigator said Thursday that a whistleblower is helping him build a case against insurers who denied thousands of claims from policyholders whose homes were destroyed in Hurricane Katrina.

Richard “Dickie” Scruggs, who helped secure a multibillion dollar settlement against tobacco companies in the 1990s, told The Associated Press the whistleblower gave him copies of internal reports prepared by engineers hired by an insurance company to inspect storm-damaged homes.[...]

I really do not like it when insurers shirk their duties, assuming that these whistleblower reports are accurate.

However, I’m not entirely sure how this helps Scruggs make the claim that flooding should be covered under standard homeowners policies…other than just making the insurance industry look bad.

Tags: Catastrophes · ·