Louisiana’s Attorney General hasfiled a lawsuit against 6 insurance companies…
Attorney General Charles Foti filed a lawsuit in Orleans Parish
Civil District Court late Wednesday alleging collusion, price-fixing
and anti-trust violations by six major insurance companies – including
Allstate and State Farm – as well as the firms that manufacture their
claims-processing software, and the companies that offer them advice or
collect their data.
The suit, filed in conjunction with several outside law firms deep
in Katrina litigation, is based on the work of an ongoing investigation
by the Louisiana Attorney General, who lost his re-election bid in the
October 20 primary.
It says that these groups conspired to
manipulate commerce for their own enrichment “by rigging the value of
policyholder claims and raiding the premiums held in trust by their
companies” and that companies “coerced their policyholders into
settling their claims of damages for less than their value by editing
engineering reports, by delaying payment and by forcing policyholders
to litigate claims to receive full value.”
Does Foti havethis to look forward to? Mississippi state Attorney General Jim Hood is being sued by State Farm for investigating insurance flood claims…
State Farm filed the lawsuit against Hood to stop an investigation into
the company’s handling of federal flood claims from Katrina. State Farm
claims the investigation is “harassment,” but Hood maintains it is
Hood calls that suit harrassment…
In a written response Hood called the lawsuit “frivolous, without
substantial justification” and “presented merely for the purpose of
harassment.” He is asking the lawsuit be dismissed and State Farm pay
all court costs and attorney fees.
According to court records, Hood’s office has convened a grand jury to
investigate State Farm’s handling of claims paid by the National Flood
Insurance Program. Records also indicate there is an ongoing federal
I keep reading there is a fed investigation. I wonder when something will actually come of that…if at all.
UPDATE:McKinsey & Co is also named in the LA lawsuit.