Judge Rejects Fraud Claims Against State Farm In Katrina Lawsuit

As a follow-up to mass tort attorney Dickey Scruggs’s bribery charges in his class action lawsuit for Hurricane Katrina victims, adding insult to injury, he also loses his case against State Farm for fraud. But wait, there’s more! Any attorney that worked with Scrugg’s in this lawsuit can not represent any policyholder against State Farm in any Katrina related claim.

The case was a key lawsuit filed by embattled tort attorney Richard “Dickie” Scruggs, who sued on behalf of dozens of storm victims claiming that State Farm routinely denied claims based on bad faith and fraud. Scruggs has since pleaded guilty to federal bribery charges in an unrelated case and no longer represents storm victims.

Senter ruled earlier this month that attorneys once affiliated with Scruggs on the case could no longer represent any policyholders in lawsuits against State Farm over Katrina damages. The judge said the attorneys knew Scruggs paid two sisters who once worked for Renfroe $150,000 a year and planned to use them as so-called “whistleblowers” after they secretly copied thousands of storm damage reports. Senter said “these payments were clearly improper.”

Do you think it’s part of a conspiracy like this guy?

related link: Lawyers Being Rounded Up, In US? | Lawyers Bribing Judges?

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