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(Bloomberg) — A Travelers Cos. unit and other flood insurers accused by Hurricane Sandy victims in New York of using falsified engineering reports must turn over the drafts to policyholders, a three-judge panel ruled amid allegations that manipulation may have been widespread.

The group of federal magistrate judges in Brooklyn and Central Islip rejected arguments from insurers that disclosure was unfair or burdensome and ordered the materials turned over to the storm victims by Dec. 12. The panel also set a hearing for Jan. 28 over allegations that insurers used doctored reports to avoid paying damage claims.

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