AIG Unit Sued Over Property Firm’s Subsidized Housing Case Costs

A property management company sued an American International Group Inc. unit for refusing to defend it in a subsidized housing class action that resulted in a $16.5 million settlement, claiming the insurer breached its contract and acted in bad faith.

AIG’s Lexington Insurance Co. failed to provide payment under a commercial general liability policy that included up to $12 million in personal and advertising injury coverage from 2010 to 2020, Wasatch Property Management Inc. said in a complaint filed Tuesday in the US District Court for the Central District of California. Wasatch claims damages exceeding $8.6 million as a result ...