Qui Tam Relators Entitled to Further Discovery into State Farm’s Alleged Katrina Scheme, 5th Cir. Rules

NEW ORLEANS — A trial court erred in denying qui tam plaintiffs’ motion for further discovery into alleged instances in which State Farm Fire and Casualty Co. submitted false claims to the U.S. Government for payment on flood policies relating to damage caused by Hurricane Katrina damage.

On July 13, the 5th Circuit U.S. Court of Appeals found the plaintiffs’ allegations and trial evidence entitled them to at least some additional discovery. The appellate court also found a jury properly found for the plaintiffs and against State Farm on a single bellwether false claim under the False Claims Act.

Hurricane …