Supreme Court to hear State Farm case over Hurricane Katrina fraud claimWASHINGTON (Reuters) - The U.S. Supreme Court on Tuesday agreed to hear an appeal by State Farm contesting a jury finding that the insurance company defrauded the federal government when assessing damage caused by Hurricane Katrina in 2005 along the Gulf of Mexico coast. The court will review a 2015 ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals upholding the verdict in a suit brought under the federal False Claims Act, which lets people sue over allegations that the government has been defrauded. The court will consider a lawsuit brought by sisters Cori and Kerri Rigsby, former claims adjusters who worked with State Farm after the hurricane. People win a portion of the damages if such a False Claims Act suit is successful. The jury found that the U.S. government had been defrauded of $250,000 over a house that had sustained Katrina-related damage in Biloxi, Mississippi. The Rigsbys said the damage was caused by wind, which would be covered by the owners’ policy with State Farm. But State Farm concluded that the damage was flood-related, which was covered by the federal government’s flood insurance program. The court said State Farm would have to pay $758,000 in damages. The Rigsbys were awarded $227,000 under the False Claims Act. State Farm argued in part that the lawsuit should have been thrown out because the Rigsbys’ former lawyer, Dickie Scruggs, had distributed information about the lawsuit to members of the media. False Claims Act lawsuits are required to be filed under seal and remain private for 60 days. In 2008, Scruggs was convicted of conspiring to bribe a judge in a different case. He was sentenced to five years in prison. The court will hear oral arguments and issue a ruling in the case during its next term, which begins in October and ends in June 2017. politicsNews
supreme court hear state farm case hurricane katrina fraud claimwashington reuters the supreme court tuesday agreed hear appeal state farm contesting jury finding insurance company degraded federal government assessing damage caused hurricane katrina along gulf mexico coast the court review ruling new circuit court appeals upholding verdict suit brought federal false claims act lets people sue allegations government degraded the court consider lawsuit brought sisters core kerry rugby former claims adjusted worked state farm hurricane people win portion damages false claims act suit successful the jury found government degraded house sustained damage bilo mississippi the rigsbys said damage caused wind would covered owners policy state farm but state farm concluded damage covered federal government flood insurance program the court said state farm would pay damages the rigsbys awarded false claims act state farm argued part lawsuit thrown rigsbys former lawyer dice scruggs distributed information lawsuit members media false claims act lawsuits required filed seal remain private days in scruggs convicted conspiring bribe judge different case he sentenced five years prison the court hear oral arguments issue ruling case next term begins october ends june politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Supreme Court to hear State Farm case over Hurricane Katrina fraud claimWASHINGTON (Reuters) - The U.S. Supreme Court on Tuesday agreed to hear an appeal by State Farm contesting a jury finding that the insurance company defrauded the federal government when assessing damage caused by Hurricane Katrina in 2005 along the Gulf of Mexico coast. The court will review a 2015 ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals upholding the verdict in a suit brought under the federal False Claims Act, which lets people sue over allegations that the government has been defrauded. The court will consider a lawsuit brought by sisters Cori and Kerri Rigsby, former claims adjusters who worked with State Farm after the hurricane. People win a portion of the damages if such a False Claims Act suit is successful. The jury found that the U.S. government had been defrauded of $250,000 over a house that had sustained Katrina-related damage in Biloxi, Mississippi. The Rigsbys said the damage was caused by wind, which would be covered by the owners’ policy with State Farm. But State Farm concluded that the damage was flood-related, which was covered by the federal government’s flood insurance program. The court said State Farm would have to pay $758,000 in damages. The Rigsbys were awarded $227,000 under the False Claims Act. State Farm argued in part that the lawsuit should have been thrown out because the Rigsbys’ former lawyer, Dickie Scruggs, had distributed information about the lawsuit to members of the media. False Claims Act lawsuits are required to be filed under seal and remain private for 60 days. In 2008, Scruggs was convicted of conspiring to bribe a judge in a different case. He was sentenced to five years in prison. The court will hear oral arguments and issue a ruling in the case during its next term, which begins in October and ends in June 2017. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: supreme court hear state farm case hurricane katrina fraud claimwashington reuters the supreme court tuesday agreed hear appeal state farm contesting jury finding insurance company degraded federal government assessing damage caused hurricane katrina along gulf mexico coast the court review ruling new circuit court appeals upholding verdict suit brought federal false claims act lets people sue allegations government degraded the court consider lawsuit brought sisters core kerry rugby former claims adjusted worked state farm hurricane people win portion damages false claims act suit successful the jury found government degraded house sustained damage bilo mississippi the rigsbys said damage caused wind would covered owners policy state farm but state farm concluded damage covered federal government flood insurance program the court said state farm would pay damages the rigsbys awarded false claims act state farm argued part lawsuit thrown rigsbys former lawyer dice scruggs distributed information lawsuit members media false claims act lawsuits required filed seal remain private days in scruggs convicted conspiring bribe judge different case he sentenced five years prison the court hear oral arguments issue ruling case next term begins october ends june politicsnews