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A new legal motion recently filed by State Farm seeks to remove and disqualify famed attorney Richard Scruggs from representing Mississippi policyholders who are disputing Katrina claim payments with the company.

The action stems from initial information the Scruggs Katrina Group received from independent claim adjusters Cori and Kerri Rigsby back in Feb. 2006. According to the motion from State Farm, Scruggs illegally and unethically obtained the confidential information from the two sisters, and then gave them both litigation consulting jobs at the firm that paid them each $150,000 a year.

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