AIG Looks To Dismiss Lawsuit Over Madoff Losses

Law360, New York (January 25, 2010, 4:32 PM EST) -- American International Group Inc. has moved to dismiss a putative class action accusing it of wrongly denying coverage for millions of dollars in losses to Ponzi schemer Bernard L. Madoff, claiming the lead plaintiffs never suffered any actual losses from their Madoff investments.

AIG filed a motion to dismiss Friday in the U.S. District Court for the Southern District of New York, writing that the insurance policy in question only provided for losses resulting “directly” from fraud.

Since the plaintiffs withdrew more money from the fund...
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