State Farm issued the following simple press release regarding the Rigsby sisters’ whistleblower lawsuit against State Farm arising from Hurricane Katrina:
Gulfport, MS, August 19, 2022 – State Farm Fire and Casualty Company and Relators Cori and Kerri Rigsby announced today that they have settled their long-running False Claims Act litigation arising out of State Farm’s handling of flood insurance claims for the Federal Emergency Management Agency in the aftermath of Hurricane Katrina, which struck the Gulf Coast in August 2005. The parties are pleased to bring an end to this 16-year litigation.
What was the settlement amount? $100 million, as reported in State Farm will pay $100 million to feds over Hurricane Katrina insurance Claims:
State Farm Fire and Casualty Co. has agreed to pay the federal government $100 million for potential liability over its handling of flood insurance claims after Hurricane Katrina, settling a lawsuit that two whistle blowers filed against the company more than 16 years ago.
Other terms of the settlement remained confidential in the whistle blower lawsuit filed in 2006 by former claims adjusters and sisters Cori and Kerri Rigsby, who lived in Ocean Springs at the time. State Farm also agreed to dismiss counterclaims it filed against the sisters, alleging that they breached their employment agreements and violated other laws by taking company documents while working as independent adjusters.
I first mentioned the Rigsby sisters in a 2008 post, Mississippi Insurance Department Finds State Farm Wrongdoing But Not With Evil Intent. If you want to study this case, I listed dozens of blog posts I have written about this case in State Farm Claims Whistleblowers Win in United States Supreme Court and May Get Additional Evidence of Wrongdoing.
I have met with the Rigsby sisters. I am overjoyed for their victory and this resolution. While it has been a long time, they show other adjusters working for insurance carriers that you do not have to remain silent while your employer is conducting unethical claims activity.
Thought For The Day
The purpose of whistleblowing is to expose secret and wrongful acts by those in power in order to enable reform.