LNL – Scruggs’ old partners warn company not to satisfy State Farm request

Scruggs’ old partners warn company not to satisfy State Farm request

An engineering and analysis firm says it cannot comply with a State Farm Insurance Cos. subpoena in a Hurricane Katrina case because it would violate a settlement reached with the former Scruggs Katrina Group.

The suit, on which Glenda Shows is the lead plaintiff, has 21 policyholders alleging a violation of federal racketeering laws by State Farm during its post-Katrina claims-handling practices.

Originally a defendant in the suit, Forensic Analysis and Engineering Corp. reached a confidential settlement in November to be removed from the hundreds of lawsuits filed by the former SKG, a group of law firms that joined together to sue insurance companies.

Legal Newsline
3/19/8