NU Online News Service, Oct. 12, 2:52 p.m. EDT
American International Group is asking a federal judge to deny class-action status to a lawsuit brought against it by a group of insurance companies alleging AIG underreported premiums on workers' compensation policies.
According to a filing in the U.S. District Court in Illinois, AIG is being sued by a group, led by Liberty Mutual, now seeking class-action status. AIG said the "barebones memorandum in support of their motion for class certification contains no meaningful discussion of why the specific allegations, facts and circumstances of this case warrant certification."
The group alleges AIG underreported workers' compensation premiums to residual insurer National Workers' Compensation Reinsurance Pool (NWCRP).
AIG has also filed suit against the group of insurers, alleging they did the same thing. Liberty Mutual, The Hartford Financial Services Group, Travelers Insurance Group, Chubb Group of Insurance Companies and Ace INA Holdings are named as defendants.
Each side claims the underreporting threw off the insurers' share to the pool, to which they all contribute.
In June U.S. District Court Judge Robert W. Gettleman of the Northern District of Illinois denied AIG's request to dismiss Liberty Mutual's claims on behalf of the group of insurers. Judge Gettleman also denied AIG's claim for unjust enrichment. However, the judge did rule that AIG could proceed with its lawsuit.
In AIG's latest filing, the insurer said the case is "far from the type of case for which the class action mechanism was designed," adding that the insurers are alleged to have taken part in the same conduct, "thereby making class certification particularly inappropriate."
In other AIG-related litigation news, the insurer and Duke University may settle within the next month, court filings show. The university is seeking to recoup costs related to confidential settlements of three players and the coach of the Duke lacrosse team. Mediation is scheduled Nov. 4, according to court records.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.