Sandy lawsuit accuses insurance companies of shaving settlements

Superstorm Sandy victims have filed a new round of lawsuits, claiming insurance companies were shaving money off settlements awarded to those trying to rebuild their homes.



The class action lawsuit alleges that the National Flood Insurance Program and three affiliated insurance companies robbed Sandy victims out of millions by purposely omitting tax figures from home estimates.



"The insurance companies were manipulating the software programs they were using to deny people's claims and not pay them," said attorney John Houghtaling.



News 12 reached out to FEMA for comment on these latest allegations. A spokesperson said he could not comment directly on the case, but did say that FEMA is in the process of enacting a set of reforms that include providing more oversight over insurance companies.



 


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