Class Certified in $450 Million Settlement With AIG in Workers’ Comp Premium Case

A $450 million class settlement between American International Group Inc. and other insurance companies who accused the insurance giant of underreporting workers’ compensation premiums moved one step closer to approval, as the U.S. District Court for the Northern District of Illinois certified a settlement class on July 26 (Safeco Insurance Co. v. American International Group Inc.).

The plaintiffs, a pool of insurance companies known as the National Workers’ Compensation Reimbursement Pool (NWCRP), alleged that AIG engaged in a decades-long multi-billion dollar fraudulent underreporting of workers’ compensation premiums so that it would reduce its share of the residual workers’ ...