National Council of Compensation Insurance, Inc. v. AIG et al (Northern District of Illinois, August 31, 2009)
Just a few days after District Court Judge Gettleman dismissed the lawsuit initiated by the National Workers' Compensation Reinsurance Pool for lack of standing, Liberty Mutual Insurance Co., among several other insurance companies, filed a new lawsuit against AIG on August 31, 2009 based upon the same facts. Liberty Mutual alleges to have standing as being a member of the pool.
The lawsuit alleges that AIG falsely provided false reports to the National Workers' Compensation Reinsurance Pool to evade its market obligations. As such, plaintiffs allege that AIG knowingly provided such misrepresentations to the Pool to avoid having to secure more coverage. Plaintiffs allege that the defendants violated the Massachusetts Regulation of Business Practice and Consumer Protection Act as well as common law fraud along with several other causes of actions.
Although the complaint does not specify the amount of damages the prior complaint sought approximately one billion dollars in damages.
For a copy of the complaint, click here
Jeffrey L. Kingsley and Daniel W. Gerber