AIG Can't Sink Coverage Claims Over $180M Strip-Search Suit

Law360, New York (June 10, 2013, 6:46 PM EDT) -- An Illinois judge has refused to dismiss a $180 million whistleblower lawsuit claiming American International Group Inc. defrauded Cook County, Ill., out of coverage for a massive class action over strip search procedures at the county jail.

The lawsuit alleges AIG misled the county into agreeing to a change in insurance providers in order to avoid having to cover it in its litigation with the class, made up of 250,000 to 300,000 people, which the county settled for about $55 million in 2010. AIG had asked...
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