Federal magistrate judges called off a hearing to explore whether damage reports were altered to justify denials and underpayments of insurance claims from Hurricane Sandy after the Federal Emergency Management Agency said it was “deeply troubled” and trying to resolve claims about allegedly improper practices.

As attorneys submitted witness lists and exhibits for a hearing on claims of altered engineering reports, Eastern District Magistrate Judges Cheryl Pollak (See Profile), Gary Brown (See Profile) and Ramon Reyes Jr. (See Profile) adjourned the hearing on Tuesday without setting a new date. They did so after a Feb. 13 FEMA filing that acknowledged policyholders “now question the integrity” of the claims process.

The three magistrate judges are tasked with overseeing Hurricane Sandy litigation; as of Wednesday, policyholders have filed 1,323 cases challenging the denials or alleged underpayments by wind and flood insurers. Of those cases, 407 have been resolved.