State Farm Wants Whistle Blowers Fined

The two sisters who exposed State Farm's behavior in the aftermath of Hurricane Katrina are coming under fire by the insurance giant.

The Rigsby sisters were State Farm employees who made copies of internal memos, and then handed these copies over to an attorney. These memos described in detail State Farm's plan to deny Hurricane Katrina claims by blaming the majority of the damage on flooding (which is not covered) as opposed to winds (which is covered.)

While it appears that there was some unfortunate conduct by the attorney that was initially representing the Rigsby sisters, it pales in comparison to the conduct by State Farm, who made blanket denials of claims without even bothering to really see what caused the damage.

A judge that allows the financial punishing of whistleblowers is setting a dangerous precedent. Lets hope that the judge who is presiding over this case comes to the same conclusion.