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The Scruggs Katrina Group filed a federal lawsuit in Mississippi today accusing State Farm, an engineering firm and an adjusting concern of a racketeering conspiracy it alleges had defrauded a group of coastal homeowners out of $3.97 million.

Their action followed a court move by State Farm yesterday, which asked a judge to have attorney Richard Scruggs and Scruggs Katrina Group thrown off a Hurricane Katrina claims case for ethical violations.

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