State Farm Settles Lawsuits

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State Farm Settles Lawsuits

By WEEK Producer

Story Published: Jan 13, 2009 at 11:09 PM CDT

Story Updated: Jan 13, 2009 at 11:47 PM CDT

Dozens of Hurricane Katrina–related lawsuits filed against State Farm Insurance by Richard ``Dickie'' Scruggs have been settled.

And while terms of the settlements are confidential, officials with State Farm say the company is pleased to resolve the disputes.

Scruggs is serving a federal prison term for bribing a state judge. His lawsuits were turned over to a Texas law firm, which reached the settlements with State Farm.

In one of the lawsuits, Scruggs claimed that State Farm and its bank engaged in a criminal enterprise with vendors to deprive policyholders of money owed for wind damage from Hurricane Katrina.
State Farm denies the allegation.

Court records show the plaintiffs asked the case be dropped.

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