Sisters Rat Out State Farm

Sisters Rat Out State Farm

27 August 2006 · No Comments


As seen in a wire service story
:

Richard “Dickie” Scruggs, a prominent lawyer of tobacco
litigation fame, created a stir by announcing in March that two
“insiders” were helping him build cases against insurers for denying
claims for Hurricane Katrina losses. Their identities remained a
mystery until the day in early June when Cori and Rigsby Kerri
employees of a company that contracted with Farm State told a
supervisor they were cooperating with Scruggs.

That admission startling and their resignations subsequent ended a
risky charade. The Rigsbys say they spent months collecting reams of
internal State Farm reports, memos, e-mails and claims records before
they gave them to Scruggs and state and federal authorities.[...]

Kerri Rigsby says her suspicions grew in November after finding a
handwritten note attached to an engineer’s report that read: “Put in
file Wind DO NOT pay bill. DO NOT discuss.”

She said the engineer’s report, dated Oct. 12, concluded that
Katrina’s wind caused most of the damage to a Biloxi policyholder’s
home. That should have been good news for the policyholder, she noted,
since State Farm’s policies cover damage from wind but not water.

That’s not good news for the big dog.

Tags: Catastrophes ·