Qui Tam Lawsuit Accusing Insurers, Adjusters of Inflating WYO Claims Dismissed in Texas

HOUSTON — A Texas federal judge has dismissed a qui tam action accusing certain insurers and adjusters of submitting inflated claims on Government-backed flood insurance policies while reducing claims on privately backed wind insurance policies, ruling that the relator is not an original source of the information on which his complaint is based.

In a Jan. 28 order, Judge Lee H. Rosenthal of the U.S. District Court for the Southern District of Texas further found that these allegations have already been publicly disclosed and that the relator’s action is based on these public disclosures. As a result, the complaint cannot …