State Farm subsidiary to pay $100M for false Katrina claims

GULFPORT, Miss. (AP) — A subsidiary of insurance giant State Farm has agreed to pay the federal government $100 million in restitution over its alleged mishandling of flood insurance claims after Hurricane Katrina. The settlement marks the conclusion of legal proceedings that began more than 16 years ago when two whistleblowers filed a lawsuit against State Farm Fire and Casualty Company. Sisters and former State Farm employees Cori and Kerri Rigsby sued the company for defrauding the National Flood Insurance Program. The sisters said the Illinois-based company charged the federal program for flood damage to a policyholder’s Mississippi home when the destruction was caused by wind.