$34M Fraud Verdict Against AIG Stands

Law360, New York (May 3, 2010, 6:41 PM EDT) -- A district court has reaffirmed a remanded $34 million verdict against American International Group Inc. in a suit brought by rival insurance giant AXA Versicherung AG over alleged fraud involving reinsurance contracts.

AXA's fraudulent inducement claim sounded in fraud and so was not arbitrable, Judge Jed S. Rakoff ruled in the U.S. District Court for the Southern District of New York on Thursday.

Even if it were, AIG waived whatever rights to arbitration it had, he said.

“AIG's selective and late invocation of its arbitral rights...
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