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State Farm faces criminal investigation of Hurricane Katrina claims handling

State Farm Insurance faces a new criminal investigation in TX related to how it handled potentially tens of thousands of hurricane claims there, ABC News has learned exclusively. Gregg Cox, who leads the public integrity unit of the Travis County DA's office in Austin, confirmed to ABC News his investigators recently launched the probe after reviewing newly released communications from top State Farm managers in Texas. Some of the same communications have led to lawsuits by customers who say they were defrauded by State Farm Lloyds, the Texas subsidiary of the larger insurance company. The documents in question relate to an alleged cover-up by State Farm management related to its denial of consumer insurance claims for a common type of roof damage that occurs during high wind events and hurricanes. MARK GREENBLATT, ABC News 09/07/2012

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