Liberty Mutual vows to press on with anti-AIG settlement effort
In fact, the company said the ruling was "not unexpected at this stage of the proceeding. Liberty Mutual Group is determined to pursue this matter through to its conclusion."
Last month the 7th U.S. Circuit Court of Appeals in Chicago denied a motion to allow Liberty Mutual to appeal a federal judge's decision to grant preliminary approval of AIG's offer to settle litigation with a class of plaintiffs comprised of rival insurers. The decision effectively cleared the way for the process to continue in District Court.
At issue is whether the $450 million settlement for AIG's alleged underreporting of workers' comp premiums should proceed. Liberty Mutual contends the settlement is not fair, reasonable, or adequate "because it was predicated on an erroneous underreporting estimate and negotiated by conflicted parties who benefitted themselves at the expense of the class," the company said. "The settlement is the latest effort by AIG to avoid taking full responsibility for its decades of admitted underreporting of workers' compensation premiums."
AIG expressed optimism that the trial court would grant final approval of the settlement after a November hearing. "We are pleased that the federal appeals court rejected Liberty Mutual's latest attempt to block this settlement supported by many of AIG's largest competitors and the lead insurance regulators in every state," AIG said.
Read more at the WorkersComp Forum homepage.
September 1, 2011
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