ALTON, Ill. (Oct. 9) (Press Release): 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 alleging unfair business practices, fraud and violations of the federal racketeering statutes.
The businesses allege that for approximately four decades beginning in the 1970s, AIG engaged in a sophisticated scheme to misreport the amount of workers’ compensation premiums 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 less money was collected in workers’ compensation premiums in these states, AIG caused . . .