Federal Court Rejects Liberty Mutual's Request To Appeal AIG's 450 Million Dollar Offer To Settle Work Comp Underreporting By Lonce LaMon - August 25, 2011
The 7th U.S. Circuit Court of Appeals in Chicago just this past Friday, August 19th, denied Liberty Mutual's request for permission to appeal a federal judge's decision to grant preliminary approval of AIG's 450 million dollar offer to settle litigation over AIG's alleged years-long underreporting of workers' compensation premiums.
The allegation began in 2006 by then New York Attorney General Eliot Spitzer, that AIG underreported workers' comp premiums to avoid paying their fair share of residual market assessments.
The appeals court also denied Liberty Mutual's request to block the mailing of the settlement notices to the potential members of the class of insurers that would be eligible to share in the 450 million dollar settlement.
In a statement, AIG said it is pleased that the federal appeals court "rejected Liberty Mutual's latest attempt to block this settlement supported by many of AIG's largest competitors and the lead insurance regulators of every state. AIG is optimistic that the trial court will grant final approval of the settlement after it takes up that question at a November hearing."
Liberty Mutual said, "Although we are disappointed, the denial of this discretionary appeal was not unexpected at this stage of the proceeding. Liberty Mutual Group is determined to pursue this matter through to its conclusion."
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA