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State Farm has reached a settlement on a Mississippi Hurricane Katrina claim which was the centerpiece of litigation over how the company made its determination of wind versus flood damage.

The suit charging bad faith against the Bloomington, Ill.-based insurer was dropped by the Biloxi, Miss., couple recently. State Farm told NU Online News Service that the dropped charges made up “the centerpiece of allegations of State Farm wrongdoing promoted by” attorney Richard “Dickie” Scruggs (See “Allegations of State Farm Katrina Misconduct Withdrawn,” NU Online News Service, Sept. 11). He is now serving a prison sentence on bribery charges.

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