Claims News Service, July 30, 2:49 p.m. EDT -- What is fast becoming a main attraction to the Hurricane Katrina three-ring circus, an investigation into the informational gathering and usage techniques of Richard Scruggs and his law firm took yet another turn late last week when a U.S. district judge appointed two special prosecutors to take legal action after an initial request was declined.

Alabama U.S. District Judge William M. Acker, Jr. had originally recommended that state prosecutors pursue criminal contempt charges against Scruggs in regards to his dealings and relationship with independent claim adjusters Cori and Kerri Rigsby. The request stemmed from a complaint brought by independent adjusting firm E.A. Renfroe that said Scruggs illegally obtained confidential material from the sisters, and then unethically gave them both litigation consulting jobs that paid them each $150,000.

However, in a seeming victory for Scruggs last week, U.S. Attorney for the Northern District of Alabama Alice Martin backed off the request, stating, "Following a serious and thorough review of the facts surrounding this indirect criminal contempt, I respectfully decline to prosecute Mr. Scruggs or his firm."

But the story doesn't end there. Not content with the decision to ignore his recommendations, Judge Acker promptly appointed and designated two special prosecutors, Charles Sharp and Joel Williams, to pursue the charges of criminal contempt against Scruggs. The case will be handled independently of other on-going litigation involving the Rigsby sisters and their former independent employer, E.A. Renfroe, who was hired by State Farm to handle Katrina-related claims.

Stay tuned for more information as it becomes available.

Interested in more legal news and in-depth articles? Head over to Claims' legal channel for more information.

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