Suit: Insurers colluded against Louisiana’s residents

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Suit: Insurers colluded

Louisiana’s largest property insurance companies worked together to reduce payments for damages caused to homes and other buildings by the 2005 hurricanes, according to a lawsuit filed late Wednesday by state Attorney General Charles Foti.

Allstate Insurance Co., State Farm Fire and Casualty Co., and other companies selling insurance in Louisiana used computer programs and other tactics to manipulate claims and lowball the amount paid property owners who suffered hurricane losses, according to Foti’s lawsuit.

Foti alleged six insurance companies and four companies that provide services to insurers violated the Louisiana Monopolies Act.

The 29-page petition was filed with the Orleans Civil District Court. State District Judge Kern A. Reese of New Orleans was assigned to hear the lawsuit, according to court records.
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