Attorney Richard Scruggs uncovered somewhere between 5,000 and 15,000 pages of confidential State Farm documents that may prove the company falsified engineering reports and engaged in other illegal activities to avoid paying legitimate Katrina claims.

Through legal wrangling, Scruggs was ordered to return these documents and he won't be allowed to use them to benefit his clients.  Scruggs contacted the Attorney General and provided the A.G.'s office with the documents, and for doing so he may be held in criminal contempt.

Ted Frank (Not Walter Olson, as I mistakenly posted) at Point of Law (who has previously bashed Scruggs) seems to think the real story is that Scruggs may have violated a protective order:

David Rossmiller continues to have good coverage of E.A. Renfroe & Co.'s seeking criminal contempt charges against Scruggs for his violation of a protective order. Earlier: Mar. 19 (and Rossmiller Mar. 6).

Source: PointofLaw.com | PointOfLaw Forum: Dickie Scruggs contempt hearing over Rigsby sisters' documents

Predictably, both Point of Law and Overlawyered are more concerned with the possible misconduct of one attorney (who Walter claims is a "zillionaire") than whether State Farm falsified documents to avoid paying legitimate claims.  I'd give much more credibility to those guys if they went after crooked corporations with even half of the zeal of their persecution of successful trial lawyers.