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Damage to homes in Brooklyn days after Superstorm Sandy hit in 2012.

(Bloomberg) — A Travelers Cos. unit was sued by two New York homeowners who accused it of using a doctored engineering report to reject much of their claim for flood damage from Hurricane Sandy, making it the third insurer to face such allegations.

The Standard Fire Insurance Co., along with an engineering firm and others that handled the claim, were sued yesterday in federal court in Brooklyn, N.Y., by homeowners Garry and Melina Shlyonsky, who alleged the conduct constituted a racketeering scheme.

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