AIG Accused of Racketeering in Structured Settlement Business

Insurance giant American International Group has been hit with a racketeering lawsuit accusing it of unlawfully charging successful personal injury and workers’ compensation claimants thousands of dollars in undisclosed brokers’ commissions.

Filed on Tuesday in Boston federal court, the proposed class action said AIG has reaped millions of dollars of improper profits through an alleged scheme involving so-called structured settlement annuities.

The U.S. Supreme Court will consider on Friday several cases asking it to decide whether companies can force employees to sign away their right to bring class actions as part of their arbitration agreements.

A federal judge in Illinois has tossed several claims in an upcoming bellwether trial over whether Zimmer Inc’s NexGen knee implants are unsafe in morbidly obese patients but allowed the plaintiff to proceed with a failure to warn claim.

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Source: www.reuters.com www.reuters.com

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