AIG Wins Bid To Nix Action Over Madoff Coverage

Law360, New York (October 1, 2010, 5:37 PM EDT) -- American International Group Inc. has won the dismissal of a putative class action accusing it of wrongly denying coverage for millions of dollars in losses to Ponzi schemer Bernard L. Madoff.

The lead plaintiffs withdrew more money from their Madoff fund than they deposited and therefore could not show they actually suffered a loss, Judge Paul A. Crotty ruled Thursday in the U.S. District Court for the Southern District of New York.

The plaintiffs, Los Angeles residents Robert and Harlene Horowitz, alleged in an August 2009...
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