On February 14, 2009, "The New York Times" reported the indictment of Judge Bobby DeLaughter for taking bribes from Richard Scruggs, Lott's brother-in-law. Scruggs represented Lott in litigation against State Farm Insurance company after the insurer refused to pay claims for the loss of his Mississippi home in Hurricane Katrina. According to "The New York Times," federal prosecutors have said that Lott was induced by Scruggs to offer DeLaughter a federal judgeship in order to gain the judge's favor. In 2012, Lott testified in federal court that he never told DeLaughter that he would be recommended for a federal judgeship.