AIG Fraud Claims Survive In Workers' Comp Spat

Law360, New York (February 26, 2009, 12:00 AM EST) -- As a pool of workers compensation insurers seeks to increase a $317 million settlement from American International Group Inc., a federal judge has allowed AIG to pursue its claims that other insurers also misrepresented their share of the higher-risk portion of the market but has dismissed the company's racketeering claims.

Judge Robert W. Gettleman of the U.S. District Court for the Northern District of Illinois also struck all 12 of AIG's affirmative defenses on Monday.

The judge ruled that AIG had by-and-large either pled its affirmative...
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