Filed Under:Markets, Commercial Lines

AIG, Duke University Settle Lacrosse Lawsuit

NU Online News Service, Feb. 24, 1:40 p.m. EST

American International Group Inc. (AIG) and Duke University have settled a case filed by the university, which was seeking to recoup costs related to confidential settlements with the coach of the Duke lacrosse team and three players falsely accused of rape.

Court documents filed in U.S. District Court for the Middle District of North Carolina show the insurer and the university “agree to the dismissal,” with each paying its own attorneys’ fees and costs.

No other details were given.

The lawsuit was filed in late 2008 because the insurer and university could not reach an agreement about the coverage obligations of National Union Fire Insurance Company of Pittsburgh, Pa., an AIG company.

Duke claimed National Union was liable to advance and pay the university’s defense costs related to the lawsuits against Duke by various individuals associated with the lacrosse team.

Discovery in the case was delayed because the “point person” for the case for National Union was undergoing radiation treatment for cancer and the insurer and university were ordered into mediation in November.

In March 2006 the students were falsely charged with raping a stripper at an off-campus party. They were declared innocent by the state’s attorney general after a year-long investigation.

In June 2007 Duke and the players reached an undisclosed financial settlement.

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