What is fast becoming a main attraction to the Hurricane Katrina three-ring circus, an investigation into the informational gathering and usage techniques of Richard Scruggs and his law firm took yet another turn in July when a U.S. district judge appointed two special prosecutors to take legal action after his initial request was declined.

Alabama U.S. District Judge William M. Acker, Jr. had originally recommended that state prosecutors pursue criminal contempt charges against Scruggs in regards to his dealings and relationship with independent claim adjusters Cori and Kerri Rigsby. The request stemmed from a complaint brought by independent adjusting firm E.A. Renfroe that said Scruggs illegally obtained and used confidential material from the sisters, and then unethically gave them both litigation consulting jobs that paid them each $150,000.

However, in a seeming victory for Scruggs a few weeks later, U.S. Attorney for the Northern District of Alabama Alice Martin backed off Judge Acker's request, stating, "Following a serious and thorough review of the facts surrounding this indirect criminal contempt, I respectfully decline to prosecute Mr. Scruggs or his firm."