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| | Liberty Mutual Files Opposition to American International Group's Proposed Workers Compensation Premium Underreporting Settlement By Lonce LaMon - May 3, 2011
Liberty Mutual announced in a Press Release on Friday that its Ohio Casualty and Safeco units have filed opposition papers against a proposed settlement of the class action suit pending against AIG for their decades of intentionally underreporting workers' compensation premiums.
In Liberty Mutual's view, according to its Press Release, the settlement proposed by seven Intervenors: ACE, Auto-Owners, Companion, FirstComp, Hartford, Technology and Travelers is totally in AIG's self-interest and in the interest of several intervenors but is detrimental to the class of over 500 insurance companies victimized by AIG's admitted wrongdoing.
The currently known extent of AIG's underreporting is $6.1 billion, nearly three times the amount that the settlement is predicated upon. Conservatively, the actual damage to the insurance industry caused by AIG's historic misbehavior exceeds $1.5 billion.
The two Liberty Mutual Group units stepped forward two years ago to make certain that AIG adequately addresses their systematic practice of underreporting workers' compensation premium, and they believe they remain in the best position to adequately represent the class and prosecute the claims against AIG.
Their position is that the proposed settlement is nothing more than an attempt by AIG to circumvent an accurate accounting by a court-appointed statistical expert of AIG's decades of actual underreporting so the company can sidestep its own culpability and avoid exemplary damages. Liberty Mutual is confident that the Court will see the proposed settlement as the byproduct of a collusive process between AIG and hopelessly conflicted parties.
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