Louisiana's Attorney General has filed a lawsuit against several major insurance companies and third-party groups, alleging that they worked together to “deny, delay, and defend,” while creating a monopoly and artificially fixing prices on services after Hurricane Katrina.
In the complaint, which was filed in early November, Louisiana Attorney General Charles C. Foti, Jr., accused Allstate, Lafayette Insurance, Xactware, MS/B, Insurance Services Office (ISO), State Farm Fire and Casualty, USAA Casualty, Farmers Insurance Exchange, Standard Fire, and McKinsey and Company of suppressing competition in the state's insurance industry to obtain profits illegally. Specifically, the complaint states:
“In a scheme to thwart policyholder indemnity and in direct violation of their fiduciary duties, insurer defendants and others continuously manipulated Louisiana commerce by rigging the value of policyholder claims and raiding the premiums held in trust by their companies for the benefit of policyholders to cover their losses, as taught by McKinsey & Company.”
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