State Farm® Asks Court to Dismiss False Claims Act Suit and to Hold Accountable Plaintiffs and Their Lawyers for Unlawful Conduct (4/8/08)

On April 8, 2008, State Farm filed a series of motions asking the Court to dismiss a lawsuit brought by Cori and Kerri Rigsby, two independent adjusters who handled claims for State Farm following Hurricane Katrina, and has filed a counter claim against the Risbys for conspiracy and computer fraud.

Motion to Dismiss False Claims Act Suit:  State Farm, in a series of motions filed in United States of America ex al Cori and Kerri Rigsby v State Farm Insurance, has asked the Court to throw out the False Claims Act suit brought by Cori and Kerri Rigsby because it has no merit.

State Farm moved to dismiss the False Claim Actlawsuit on two key issues:  The Rigsby sisters – even after filing an amended complaint in May 2007 -- have not provided any facts or examples that support their allegations, and therefore have no standing to bring such groundless allegations before the Government.

Counterclaim Filed Against the Rigsbys:  In publicly-filed legal papers, State Farm asserts: “Objects of the conspiracy included the unlawful misappropriation of State Farm’s property, including documents and electronically stored information (“ESI”), to prepare for and litigate civil actions against State Farm, and to unlawfully extort civil settlements from State Farm through improper use of criminal process and influence over certain prosecutorial authorities."

State Farm’s press release provides details related to both claims.