A court in New York has given its preliminary approval to a settlement in a suit involving the alleged under-reporting of American International Group’s market share in the workers’ compensation market to trim its payments to state insurance pools.
AIG would pay $450 million, less than a third of the amount sought by Liberty Mutual Holding Co., which said in April that it opposed the settlement because it prevented full disclosure of AIG’s actions.
AIG agreed in January to pay the $450 million to settle the suit filed by competing insurance companies, who charged that the insurer falsely reported its market share so it could pay less to various state insurance pools, according to Reuters.
Reporters for several news organizations reported that they were unable to find court documents supporting the preliminary approval, but AIG did comment.
“AIG is optimistic that the proposed settlement will soon receive final approval as a fair and appropriate resolution of this litigation,” the insurer said in a statement.
Court endorses AIG’s $450 million payment to end workers’ comp. suit via IFAwebnews.com .
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