State Farm’s Counterclaims Against Former Adjusters to Proceed in Miss. Federal Court

ABERDEEN, Miss. — A Mississippi federal judge has refused to dismiss counterclaims asserted by State Farm against former claims adjusters who accused the insurer in a qui tam action of submitting false claims to the U.S. Government for payment on flood policies relating to damage caused by Hurricane Katrina.

In a May 27 order, Judge Halil S. Ozerden of the U.S. District Court for the Southern District of Mississippi found the insurer has sufficiently pled its counterclaims of violations of the Computer Fraud and Abuse Act, fraud, violation of the Mississippi Uniform Trade Secrets Act, breach of contract, breach of …