Famed attorney Richard “Dickie” Scruggs dodged criminal contempt charges last month that stemmed from Hurricane Katrina litigation when a U.S. district judge granted his request for a dismissal despite acknowledging that “a cloud of impropriety” surrounded Scruggs’ actions.

The ruling by Senior U.S. District Judge Roger Vinson is just the latest action in a case that began in 2005 with a pair of adjusters/sisters, Cori and Kerri Rigsby. The two were contracted by independent claim-adjusting firm E.A. Renfroe to work State Farm claims that were reported following Katrina. But when they suspected State Farm of committing bad faith against policyholders, the sisters copied thousands of pages of documents and shared them with Scruggs, the U.S. attorney for Southern Mississippi, the FBI, and the producers of the television show, 20/20.

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