Let’s see… first, the judge refuses to bless Mississippi’s and State Farm’s proposed settlement of Katrina claims. Then Scruggs encourages policyholders to not participate. And now, fueling the apparent collapse, Attorney General Hood apparently moves ahead with the suit that was to be dropped per the agreement. What a mess!
From the New York Times:
The state is seeking unspecified compensatory and punitive damages against State Farm, based in Bloomington, Ill., accusing it of breach of contract. Mr. Hood’s office filed the suit Monday in Hinds County Circuit Court.
He did not rule out reopening a criminal investigation that he ended in January as part of the agreement. Mr. Hood’s office was investigating allegations that the company had fraudulently denied policyholder claims after Katrina.
In a news conference Monday, Mr. Hood said the new lawsuit should help thousands of Gulf Coast policyholders, many of whom, he said, are still living in government-issued trailers because of State Farm’s refusal to pay claims.