AIG Advisor Group

More great news for those who purchase commercial insurance from AIG Advisor Group(Sagepoint Financial, Royal Alliance, FSC Securities).A settlement in this AIG class action arbitration suit came after a long and drawn-out investigation of AIG for bid-rigging. Before now, the investigation had resulted in a $1 billion restitution for policy holders.

It is alleged that AIG committed fraud concealed underwriting losses by converting them into capital losses, mislead the New York insurance Dept. about offshore AIG affiliates, incorrect reporting of workers’ compensation premiums, among efforts to inflate reserves. The SEC also alleges that for at least five years AIG “materially falsified financial statements through a variety of sham transactions and entities whose purpose was to paint a falsely rosy picture of their financial results to analysts and investors”. There is a fund in the amount of $800 million for AIG policy holders who were defrauded by false financial statements and $375 million for AIG policyholders harmed by bid rigging activities between 1986 and 1995 involving workers’ compensation funds. Also, New York and the SEC have allotted another $100 million for the fund as penalties against AIG. There are also pending cases against AIG’s chief executives which have yet to come to a settlement.

For more information on this case, or if you believe you were defrauded by AIG (Sagepoint Financial, Royal Alliance, FSC Securities) as a policyholder between 1986 and 1995 and would like to speak to an AIG class action attorney, please do not hesitate to contact our law firm.