A statute of limitations doesn’t start running when your lawyer tells you that you could file a lawsuit. That’s the rationale behind a Chicago ruling dismissing the last in a series of cases targeting AIG and its former CEO Maurice Greenberg for a decades-old fraud involving workers’ compensation premiums.
In a 12-page ruling issued April 27, U.S. District Judge Robert Gettleman rejected a proposed class action brought by employers that claimed AIG’s admitted misconduct had caused them them to pay higher premiums to their insurers. The judge held that the plaintiffs had waited too long before suing AIG and Greenberg in 2013 for racketeering and various state law violations. The employers should have known of their injuries no later than 2005, when the news media covered AIG’s fraudulent workers’ compensation policy scheme and Greenberg was removed from AIG’s board, Gettleman found. The statute of limitations for RICO is four years, and it’s no more than six years for the state law claims.
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