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Insurance company accused of Hurricane Sandy fraud

On March 13, a New Jersey couple filed a lawsuit in federal court against their insurance company. The lawsuit stated that the couple may have been defrauded when they filed their Superstorm Sandy claim. According to the couple, the insurance company used their software to shortchange them out of their sales tax.

The couple was reportedly paid just over $108,000 after their home was destroyed by Hurricane Sandy. However, this did not cover the full cost of the repairs. The insurance company reportedly claimed that the sales tax was included on each item represented in the claim, but it was revealed that their software at the time did not have that function. As such, the couple was seeking the costs of the sales tax and other damages. The couple's attorney stated that others may also have been affected, leading them to seek class-action status.

The report stated that there have been numerous allegations that insurance companies have defrauded many following the 2012 storm. While these insurance companies have denied doing anything wrong, officials with the Federal Emergency Management Agency announced that they were intending to allow a chance for review for those who believed they were defrauded. The review may affect up to 144,000 claims, with approximately 2,200 of those claims already in litigation.

When employment or partnership disputes arise, a business litigation attorney may assist their client with coming to a resolution. In some cases, the attorney may provide legal aid during mediation attempts or negotiation. If these options fail, the attorney may gather legal documents and other evidence needed to properly represent their client.

FOX Business, "Lawsuit: Insurance company manipulated claim software, shortchanging Sandy victims," Associated Press, March 13, 2015

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