U.S. Government Chooses Not to Intervene in Hurricane Katrina Whistleblower Lawsuit but Reserves its Rights to Intervene at a Later Date

The U.S. Attorney’s office has decided not to intervene, at this time, in United States of America, ex rel. Rigsby v. State Farm Ins. Co., a Katrina-related whistleblower lawsuit filed in federal court in Mississippi.

As discussed here, the lawsuit involves allegations that false claims were presented for payment under the National Flood Insurance Program by various insurance company defendants and engineering firms and in August 2007, the U.S Attorney’s was ordered to determine whether it would intervene by January 31, 2008.  On January 31, the U.S. Attorney’s office indicated  that its investigation was not complete and it was unable to decide whether to intervene in the lawsuit.  On this basis, it chose not to intervene at this time but it did reserve its rights to intervene at a later date.

Click here to read the U.S. Attorney’s Order in which it states its decision not to intervene at this time.

We will continue to provide updates on this and other Katrina-related issues on InsureReinsure.com.