NEW YORK (Reuters) - A court has given preliminary approval to a deal settling claims that American International Group Inc (AIG.N) under-reported its workers’ compensation market share to get out of tax obligations.
AIG said in January that it would pay $450 million to settle a lawsuit by rival insurance companies, who alleged that AIG falsely reported its market share, which let it pay a smaller share of various state insurance pools.
AIG announced the court’s preliminary approval of the settlement on Monday. “AIG is optimistic that the proposed settlement will soon receive final approval as a fair and appropriate resolution of this litigation,” it said.
A copy of the judge’s order in the case could not immediately be located.
In April, insurer Liberty Mutual said it would oppose the settlement, arguing the deal concealed the true nature of AIG’s under-reporting and the damages it caused.
A Liberty Mutual spokesman was not immediately available to comment on Monday.
Reporting by Ben Berkowitz; editing by John Wallace