AIG named in lawsuit alleging fraud in structured settlement program

Hagens Berman law firm has filed a class-action lawsuit against the nation's largest insurance company -- American International Group, known as AIG and American General Life Insurance Company, which is a part of AIG.

The lawsuit claims the companies defrauded annuitants and injury victims of their rightfully deserved claims. The suit says through their structured settlements, AIG took 4 percent from the cash portion and secretly used it to fund commissions to their own defense brokers.

According to the lawsuit, clients agreed to the 4 percent deduction, thinking it would be used to fund future annuity payments, but instead AIG kept the money for themselves.

The suit claims AIG used plaintiff's funds to decrease their defense expenses and reduce the amount of money they promised to pay clients. The lawsuit seeks more than $5 million and involves more than 100 plaintiffs, of which fewer than one-third are citizens of Massachusetts, where the case was filed in federal court.

Interview with Jennifer D'Andrea-Terreri, New York structured settlement expert

New York structured settlement expert Jennifer D'Andrea-Terreri joined Speaking of Settlements to discuss her structured settlement planning practice, based in Western NY, but covering the entire NY State area. This conversation, part one of a three part series on settlement planning, structured settlements, special needs and planning for clients looks at her special emphasis on working with addiction litigation, military families, special needs planning and other matters of interest to trial lawyers.

Jennifer's, who is the newest member of the Structured Settlement Expert Directory,  is located in Lockport NY and you can learn more about her by going to her profile on the structured settlement expert directory and looking under the NY listing.

This series looks at not only her professional work as a settlement planner, but also her expanded role as a certified mediator. Her holistic view of the process of dispute resolution, settlement planning and caring for the needs of injury victims is an excellent illustration of how the professionals, in what was once a profession that was focused exclusively on structured settlements, has expanded to provide comprehensive planning services for trial lawyers and injury victims. 

JG Wentworth pushes back against CFPB allegations of consumer fraud in structured settlement purchasing transactions

In yet another sign the structured settlement purchasing profession is in the regulatory cross hairs, the Consumer Financial Protection Bureau, CFPB, brought charges against JG Wentworth last week. The allegation is that their method of solicitation and purchase of structured settlement cash flows is deceptive and harmful to consumers. 

JG Wentworth has fired back with their own defense that the CFPB is outside it's jurisdiction and that much like it's prior attack on for profit colleges, the CFPB will lose this case as well. The Settlement Channel will continue to monitor the case and report as events unfold.