Roxborough, Pomerance, Nye & Adreani, LLP--Small Businesses Sue AIG Over
Workers' Compensation Insurance Scheme--Lawsuits In California, New York, New
Jersey Allege Decades-Long AIG Fraud
LOS ANGELES, Oct. 9, 2013
LOS ANGELES, Oct. 9, 2013 /PRNewswire/ --Small businesses in California, New
York and New Jersey this week initiated coordinated class action lawsuits in
federal courts on both coasts against American International Group ("AIG"),
its subsidiary companies, and former CEO, Maurice Greenberg, for unfair
business practices, fraud and violations of the federal racketeering
The businesses allege that for approximately four decades beginning in the
1970's, AIG engaged in a sophisticated scheme to misreport the amount of
workers' compensation premium it collected in each state, thereby causing
insured employers to pay more in certain workers' compensation fees than they
otherwise would have paid. By making it appear that less money in workers'
compensation premium was collected in these states, AIG caused regulators,
through no fault of their own, to assess artificially inflated fees on all
insured employers for certain state mandated workers' compensation programs.
Attorneys for the businesses estimate that AIG saved itself hundreds of
millions of dollars in workers' compensation fees and premium taxes, and
cheated insured employers out of hundreds of millions of dollars that they
should not have had to pay, and which could have gone back into the economy to
create or preserve jobs. This underreporting went on for decades, and
although AIG has paid almost $150 million in fines, taxes, and assessments to
various states, and has agreed to pay $450 million to resolve litigation
brought by other insurance carriers, it has never compensated the many small
businesses and other insured employers who were for decades defrauded into
paying inflated workers compensation fees and surcharges. These are the first
lawsuits brought on behalf of those businesses.
Plaintiffs' counsel Derek Brandt says, "AIG has resolved a significant amount,
but not all of its liability, for this brazen scheme. Our clients have not
been reimbursed for the money they were cheated out of and we look forward to
recovering that money for them." Adds co-counsel Drew Pomerance and Nicholas
Roxborough, "we seek justice for the thousands of insured businesses who were
damaged for years and years by AIG's fraudulent and deceptive practices."
The lawsuits are: Jayarvee Inc., dba Birdland and TMG – Emedia Inc. v. AIG,
et al., S.D.N.Y., Case No. 13-CV-7137; JPS Collision Inc. v. AIG, et al.,
D.N.J., Case No. 2:13 CV-05990-JLL-MAH; and Franjo Inc. and DMS Facility
Services v. AIG, et al., ND Cal., Case No. CV 13-4685 JCS.
The Class is represented by Derek Brandt and Deborah Rosenthal of Simmons
Browder Gianaris Angelides and Barnerd, LLC based in Alton, Illinois and San
Francisco, California; Nicholas P. Roxborough and Drew E. Pomerance of
Roxborough, Pomerance, Nye & Adreani, LLP based in Los Angeles, California;
and Andrea Bierstein and Thomas Sheridan of Hanly Conroy Bierstein Sheridan
Fisher & Hayes, LLP in New York City.
For more information or for an interview, please contact:
Nicholas Roxborough, Partner: email@example.com
Drew Pomerance, Partner: firstname.lastname@example.org
Marlena Campbell, Public Relations: email@example.com
Roxborough, Pomerance, Nye & Adreani, LLP is a Los Angeles based law firm
providing expert legal counsel and representation to the California business
community. Established in 1995, the firm offers a broad range of legal
services in all facets of civil litigation, with its primary focus on
litigation, legislation and policymaking issues involving insurance and
business related concerns.
SOURCE Roxborough, Pomerance, Nye & Adreani, LLP
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