On Thursday, U.S. District Court Judge Lee Rosenthal from the Southern District of Texas dismissed a lawsuit alleging that 24 insurers, including firm clients Brown & Brown, Inc. and Colonial Claims Co., violated the False Claims Act by exaggerating damages for government-subsidized insurance claims after Hurricane Katrina. The court ruled that the Plaintiff’s claims of insurance fraud were not original, as the fraud allegations had been reported to the public through the media as well as a number of governmental inquiries.
The Plaintiff originally filed suit in 2009 in Louisiana, four years after Hurricane Katrina struck the Gulf Coast. In 2012, the suit was dismissed and the Plaintiff filed suit in Texas. 14 defendants were dismissed from the case last November after a settlement was reached.