State Farm, Mississippi settle lawsuit over Katrina payments

BILOXI, Miss. (AP) — Mississippi has quietly settled its lawsuit against State Farm Fire and Casualty Co. for allegedly minimizing its Hurricane Katrina payments to policyholders, leaving the state to compensate homeowners. The Sun Herald reports that according to the settlement, the $12 million payment represents “restitution for damage, which was or may have been caused by a violation of law or potential violation of law” on the part of State Farm. State Farm paid the settlement in February 2021, but Attorney General Lynn Fitch never announced details of the agreement. In July, the company also agreed to pay the federal government $100 million in restitution over its alleged mishandling of flood insurance claims following Katrina.