State Farm issued the following simple press release regarding the Rigsby sisters’ whistleblower lawsuit against State Farm in the wake of Hurricane Katrina:
Gulfport, MS, August 19, 2022 – State Farm Fire and Casualty Company and relatives Cori and Kerri Rigsby announced today that they have settled their long-standing 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 this 16-year litigation to an end.
What was the settlement amount? 100 million dollars, as reported in State Farm will pay $100 million to federal authorities 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 two whistle blowers filed against the company more than 16 years ago.
Other terms of the settlement remained confidential in the whistleblower 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 they breached their employment contracts and violated other laws by taking company documents while working as independent adjusters.
I first mentioned the Rigsby sisters in a post in 2008, The Mississippi Insurance Department finds that the state farm did wrong but not maliciously. If you want to study this case, I have listed dozens of blog posts that I have written about this case State Farm claims that whistleblowers win in the US Supreme Court and can obtain further evidence of wrongdoing.
I have met the Rigsby sisters. I am overjoyed by their victory and this resolution. Although it’s been a long time coming, the other adjusters working for insurance companies show that you don’t have to stay silent while your employer engages in unethical claims practice.
The purpose of whistleblowing is to expose secret and wrongdoing by those in power to enable reforms.
– Glenn Greenwald