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State Farm Insurance Co. has filed suit against Mississippi Attorney General Jim Hood for allegedly violating an agreement to end his criminal investigation of the company’s claims handling after Hurricane Katrina. The federal lawsuit, filed in the southern district of Mississippi Sept. 13, was unsealed Friday. The suit alleges that Hood agreed to end a criminal probe into the Bloomington, Ill., insurer as part of a settlement agreement in January that called for State Farm to reopen thousands of claims. Under the agreement, State Farm also agreed to pay Hood’s office $5 million to cover the investigation costs. Despite the agreement, according to the suit, Hood issued a new subpoena on State Farm on Aug. 23, 2007. Additionally, he sent a letter to federal law enforcement officers in Alabama in July 2007 stating that he is engaged “in an ongoing investigation into what [Hood] believes is State Farm’s fraudulent conduct,” according to the suit. In his response, Hood claims the suit should be dismissed due to his prosecutorial, sovereign and qualified immunity, because the court lacks subject matter and because plaintiffs failed to exhaust administrative remedies, in addition to other grounds. Hood is represented by lead counsel J. Lawson Hester and the law firm of Page, Kruger & Holland of Jackson, Miss. Both Hood and Hester were unavailable for comment.

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