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Federal court postpones Hurricane Sandy hearing for settlement talks

Posted on Wednesday, February 25th, 2015 at 3:16 pm    

A federal court in New York decided to indefinitely adjourn a hearing over allegations that some private flood insurers forged Hurricane Sandy documents after a government agency expressed its intention to resolve the issue out of court, Reuters reported on February 18.

The Federal Emergency Management Agency (FEMA) sent a letter to the judicial panel hearing the matter, saying that it plans to meet with the plaintiffs and the flood insurers who were named as defendants in hopes of settling the matter out of court. The panel said the move would allow the affected parties to discuss possible settlement options.

In November, there were claims that some private flood insurers allegedly forged damage reports to shortchange policyholders affected by Hurricane Sandy. An investigation immediately followed, fearing that the fraudulent practice could be rampant.

Flood insurers acting in bad faith could be held liable for turning their backs on their responsibility to deliver what they once promised to policyholders. To learn how to file for legal action, speak with a Hurricane Sandy Insurance claim attorney at Williams Kherkher by calling 888-384-6376 today.