Claims News Service, Dec. 5, 11:15 a.m. EST — Mississippi attorney Richard Scruggs, besieged by litigation ranging from contempt of court to federal bribery charges, has withdrawn his law firm from further pursuing Gulf Coast insurers on charges of allegedly failing to pay claims stemming from Hurricane Katrina.

A letter was posted on Scruggs' web site that was sent to the firm's clients informing them that the Scruggs Law Firm in North Mississippi was facing criminal charges. The letter was signed by Don Barrett, Barrett Law Office, David H. Nutt, Nutt & McAlister, and Dewitt Lovelace, Lovelace Law Firm.

“As you may be aware, criminal charges have been brought against the Scruggs Law Firm in North Mississippi. These charges are unrelated to your claims and to litigation against your insurers.

“The Scruggs Law firm has informed us that in the interest of its clients, it has withdrawn from the group of attorneys who represent your claims until these legal matters have been resolved and it is also withdrawing as counsel in your case if filed. The Scruggs Law Firm has assured us that they engaged in no wrongdoing and we are confident that they will be cleared of the charges.

“Barrett Law Office, P.A., Nutt & McAlister, PLLC and Lovelace Law Firm, P.A. are committed to the same level of performance and professional expertise that have to date provided settlements to over 1,300 Katrina clients. We will continue to pursue relief for you and the other clients who have been shortchanged by their insurers.”

Lately, Scruggs has been in the spotlight usually reserved for his opponents. He has been under investigation for criminal contempt charges in Alabama since July, stemming from a complaint that accuses him of illegally obtaining and using confidential material from independent claim adjusters Cori and Kerri Rigsby, and then unethically giving them both litigation consulting jobs that paid them each $150,000.

Most recently — and what seems to have caused the Katrina withdrawal — Scruggs was indicted last week in Mississippi on federal bribery charges (the case is unrelated to the Katrina lawsuits). The indictment accuses Scruggs of trying to bribe 3rd Circuit District Court Judge Henry L. Lackey in order to receive a favorable verdict in a case that determined how $26 million in attorneys' fees would be divided between Scruggs and another attorney. The bribe was for $50,000.

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Scruggs Removes Firm From Katrina Litigation

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