Liberty Mutual seeks to replace reinsurance pool in suing AIGPosted On: Sep. 2, 2009 12:00 AM CST
CHICAGO—Liberty Mutual Group Inc. business units are seeking to become lead plaintiffs in a lawsuit against American International Group Inc. over the underreporting of workers compensation premiums.
Boston-based Liberty Mutual and its business units filed an amended complaint in federal court in Chicago on Tuesday seeking to replace the National Workers Compensation Reinsurance Pool in ongoing litigation against AIG.
On Aug. 20, a judge hearing the case dismissed the pool’s lawsuit, ruling it lacked standing to sue AIG.
The pool, operated by Boca Raton, Fla.-based NCCI Holdings Inc. and made up of AIG competitors, filed the suit seeking more than $1 billion in damages. The pool argued that it was excluded from a 2007 settlement in which AIG agreed to pay states more than $300 million to settle allegations it underreported workers comp premiums for several decades in order to avoid paying its full share of residual market assessments.
The lawsuit alleges violations of the Racket Influenced and Corrupt Organizations Act.
AIG has filed a counter complaint alleging the pool members also underpaid residual market assessments to states.