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Representing Injured Workers Since 1955

Small California businesses file workers' comp suits against AIG

When someone is hurt on the job in Los Angeles he or she should be able to expect a fair amount of workers' compensation. However, some businesses and insurance companies don’t have the employee’s best interest in mind. In fact, sometimes they will go to great lengths in order to pay out as little as possible when an employee is hurt on the job.

Several small businesses in California, New York and New Jersey have filed class actions suits against American International Group (AIG) because of workers’ compensation reporting. AIG claims that the lawsuits are aiming to reopen charges that were previously settled. However, the plaintiffs claim that AIG and its former CEO are guilty of fraud, unfair business practices and violations of federal racketeering statutes.

The lawsuit claims that AIG allegedly made it appear that less money was collected in workers’ comp premiums. This in turn caused insurance regulators to charge higher fees on insured employers for some state mandated workers’ comp programs. According to attorneys representing the plaintiffs, the case may involve thousands of firms doing business for about 30 years. They also say that the damages could amount to hundreds of millions of dollars.

When someone is hurt on the job he or she should be eligible to receive workers’ compensation. Any company who attempts to defraud workers’ comp laws and regulations could end up being charged with a crime. In any case, any person who is hurt on the job should probably considering retaining an experienced workers’ comp attorney sooner rather than later.

Source: Insurance Journal, “AIG Sued by small businesses over workers' compensation reporting,” Don Jergler and Young Ha, Oct. 10, 2013.

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