NU Online News Service, Sept. 29, 11:40 a.m. EDT
Late last week Allstate Insurance Company was informed it is the subject of a whistleblower lawsuit filed more than three years ago.
The suit alleges Allstate fabricated insurance documents to inflate the amount of flood loss suffered by three clients the whistleblower represented in connection with homeowners insurance claims disputes against the insurance company.
Attorney John H. Denenea Jr. filed the lawsuit in U.S. District Court in New Orleans on behalf of the federal government and claims Allstate "knowingly fabricated" insurance documents to decrease its own claims payments and inflate flood losses at the expense of the federal government, in violation of the False Claims Act.
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