$450M AIG workers comp class action settlement receives formal approval

CHICAGO—A $450 million settlement of a class action suit brought against American International Group Inc. for its alleged underreporting of workers compensation premiums has been formally approved.

U.S. District Court Judge Robert Gettleman approved the settlement in an order and memorandum on Feb. 28. The money is to be paid by New York-based AIG to 1,300 other commercial insurers.

The insurers had alleged that they paid states more than their fair share of residual market assessments because AIG was assigned an improperly small share of high-risk workers comp policies.

$450M AIG workers comp class action settlement receives formal approval