Suit Accusing AIG of Misrepresenting Reserves Transferred to Bankruptcy Court

NEW YORK - A New York federal judge has transferred to federal bankruptcy court a suit accusing American International Group of misrepresenting the amount of its loss reserves while negotiating two commutation agreements with The Robert Plan Corp. Wallach, et al., v. American International Group Inc., No. 11-3025 (E.D. N.Y.).

Senior Judge Denis R. Hurley of the U.S. District Court for the Eastern District of New York found that the suit is related to TRP's bankruptcy proceedings pending in the U.S. Bankruptcy Court for the Eastern District of New York.

AIG issued two reinsurance treaties to two TRP subsidiaries, Eagle …