AIG Fends Off Appeal From Former Lawyer in Whistleblower Case

The former head of AIG’s legal operations center failed to show he reasonably believed he was reporting securities violations, dooming his bid to revive a whistleblower suit, a federal appeals court said Thursday.

The worker lost his job a few months after AIG’s compliance team finished investigating his conflict-of-interest concerns. But a reasonable jury couldn’t conclude the lawyer thought he was reporting violations of federal law or that AIG retaliated against him because he initiated a whistleblower proceeding, the US Court of Appeals for the Second Circuit said in an unpublished opinion.

Aaron Katzel worked for the finance and ...