Judge Dismisses AIG Workers’ Comp Suit

A lawsuit filed in 2007 accusing AIG of fraudulently shortchanging state workers' compensation pools out of more than $1 billion has come to a conclusion.

U.S. District Court judge Robert Gettleman dismissed the lawsuit filed by the National Council on Compensation Insurance (NCCI), which manages the National Workers' Compensation Reinsurance Pool.

According to BestWire, the lawsuit argued unfair exclusion from an AIG agreement with New York state regulators to pay $343 million for alleged underpayment of workers' compensation premium taxes and other related fees and assessments.

In Thursday's ruling, Gettleman said NCCI lacked standing to sue New York-based AIG on behalf of several hundred insurers in its National Workers’ Compensation Reinsurance Pool.

However, this dismissal does not absolve AIG of potential claims by insurers that take part in such pools. Many are pursuing claims in a separate lawsuit that seeks class-action status, which Gettleman also is overseeing. Gettleman will hold a status hearing in that case, Safeco Insurance Co. v. AIG, on September 4.