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Appeals Court Dismisses Katrina Suit Against Allstate %amp; State Farm

A federal appeals court has dismissed a suit against Allstate and State Farm that alleged the companies fraudulently misrepresented wind claims as flood damage so the federal flood insurance program

By Mark E. Ruquet | Updated on February 23, 2009

A federal appeals court has dismissed a suit against Allstate and State Farm that alleged the companies fraudulently misrepresented wind claims as flood damage so the federal flood insurance program would pick-up the tab.

On Wednesday, the U.S. Court of Appeals for the 5th Circuit in New Orleans issued an opinion dismissing the suit against Allstate and State Farm, but reinstating it against six insurers and six claims adjusters including Liberty Mutual Fire Insurance Company.

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