Relators accusing State Farm of fraudulently misclassifying insurance claims faced off Tuesday with the insurer in the U.S. Supreme Court, arguing over the severity of sanctions they should face for breaking the seal on False Claims Act suits, from discretionary penalties to automatic dismissal. Despite the intentional press leak by the relators’ former counsel — the now-disbarred Dickie Scruggs, who was convicted of bribing a judge in a different case — of information about the qui tam suit, in violation of the FCA’s automatic seal requirement, relators and former insurance adjusters Cori and Kerri Rigsby have faced effectively zero consequences, Kathleen Sullivan of Quinn Emanuel Urquhart & Sullivan LLP said on behalf of State Farm Fire and Casualty Co. The Rigsbys are represented by William E. Copley, August J. Matteis Jr., Derek Y. Sugimura, Pamira S. Matteis, Matthew S. Krauss and Timothy M. Belknap of Weisbrod Matteis & Copley PLLC. You can read more about this lawsuit, and this important issue, on the Law360 website: