In the aftermath of the destruction caused by Hurricane Katrina in 2005, Cori and Kerri Rigsby accused State Farm Fire and Casualty Company of falsely misclassifying wind damage as flood damage, among other misdeeds, leaving a federal government-backed flood insurance policy to unnecessarily pay wind damage as flood damage out of United States Government funds. In 2006, the Rigsbys brought suit against State Farm under the federal False Claims Act (FCA). The FCA imposes civil liability on any person who submits false or fraudulent claims to the federal government for payment or approval. "Relators," like the Rigsbys, may bring actions under the FCA for themselves and for the government. If a lawsuit initiated by a relator under the FCA results in civil penalties or the recovery of damages, the award is typically divided between the government and the relator.
Originally published in the American Bar Association's PREVIEW of United States Supreme Court Case on October 21'st, 2016.
Please see full publication below for more information.