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February 16, 2011

State Farm Urges SCOTUS to Dismiss Claim by Whistleblower Who Leaked Suit to Media

An attorney for State Farm urged the U.S. Supreme Court yesterday to “dismiss lawsuits by whistleblowers who violate a nondisclosure requirement in the federal law that targets fraud against the government,” reports The National Law Journal’s Marcia Coyle.

In State Farm Fire and Casualty v. United States, ex rel. Rigsby, an attorney for State Farm argued that “a federal trial court should have dismissed a claim brought by two of its former adjustors, the Rigsby sisters, and the sisters’ lawyers, Richard Scruggs and his law firm,” reports Coyle. 

“State Farm contends they (the sisters and Scruggs) violated the seal requirement when they leaked the content and existence of their suit to The Associated Press, an ABC news magazine and The New York Times.”

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