BILOXI, Miss.—Mississippi has quietly settled its lawsuit against State Farm Fire and Casualty Co. for allegedly minimizing its Hurricane Katrina payments to policyholders, leaving the state to compensate homeowners.
The settlement says the $12 million payment represents “restitution for damage, which was or may have been caused by a violation of law or potential violation of law” on the part of State Farm, which has admitted no liability in its handling of claims from the 2005 storm, The Sun Herald reported.
