The Wall Street Journal Law Blog, 6/21/7
Yesterday, Scruggs sued State Farm in federal court in Mississippi, accusing the company of engaging in a “pattern of racketeering” by manipulating engineering reports on Hurricane Katrina damage so the company could deny policyholder claims. Scruggs is already pursuing litigation against the company, but this is the first lawsuit alleging violations of the civil Racketeer Influenced Corrupt Organization Act, or RICO. A spokesman for State Farm called the lawsuit nothing more than Scruggs’s “PR machine working overtime.” Here’s the 101-page complaint.
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