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More Trouble Brewing in Mississippi

A class-action lawsuit with 669 plaintiffs was filed against State Farm Insurance Co. last month.

By staff Writer | Updated on May 25, 2006

A class-action lawsuit with 669 plaintiffs was filed against State Farm Insurance Co. last month, alleging improper denial of insurance claims in Southern Mississippi. Richard Scruggs, most famous for his success in the Big Tobacco lawsuits, brought the complaint.

According to the document he filed, all of the plaintiffs listed had homes that were completely destroyed after Hurricane Katrina made landfall last year. Following the destruction, the complaint alleges that State Farm and its captive engineering firm, Haag Engineering, prepared and circulated a generic, one-size-fits-all engineering report to its adjusters that concluded all damage was due to storm surge, which is excluded in most homeowners’ policies. The complaint alleges that State Farm referred to the report as the “Bible” and expected and coerced all of its adjusters to reach conclusions consistent with it.

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