As we recently reported, Dickie Scruggs, along with his son and other colleagues, were recently indicted on charges in a judicial bribery case. Despite some media reports of Scruggs’ initial reluctance to withdraw from the representation of hundreds of policyholder clients in pending Katrina-related coverage lawsuits, Scruggs and his law firm have withdrawn their representation in these suits.

Earlier this week, the non-Scruggs law firms involved in the Scruggs Katrina Group reportedly sent out letters to more than 500 clients, reporting that the Scruggs Law Firm has withdrawn from their representation. You can read a generic copy of the letter, as it appears on the Scruggs Katrina Group website, by clicking here. As Dickie Scruggs was, for most purposes, the lead attorney in the Group, it remains to be seen what effect this withdrawal will have for the Group’s clients with respect to litigation and settlement.

Looking forward, the criminal trial for the bribery charges is scheduled to begin on January 22. Click here to view the Scheduling Order issued by the Mississippi court.

We will continue to monitor Katrina-related insurance developments, and the interesting related developments, and provide updates at