In a previous entry, we discussed a recent Katrina-related whistleblower suit filed in the Eastern District of Louisiana. As we discussed, the lawsuit claims that a number of insurers allegedly misrepresented claims to the National Flood Insurance Program so as to limit their exposure, and was filed by Branch Consultants on behalf of the U.S. government.
After our original posting, Judge Beer of the Eastern District challenged the U.S. Attorney's office to intervene in the lawsuit, requesting that the U.S. Attorney's Office in Louisiana intervene or demonstrate to the court why it should not be a party. The U.S. Attorney did not agree to intervene and filed legal briefs in support of its position that it did not need to be a party. Last week, Judge Beer withdrew his order, holding that the U.S. Attorney's Office has "shown cause for its current position in this litigation." The U.S. Attorney's Office will not become a party to this suit at this juncture, but it will continue to monitor developments in the litigation as it progresses.
We will follow the developments here at InsureReinsure.com.