News & Announcements

Weil Secures Appellate Victory for AIG In False Claims Act Case

On November 27, 2018, Weil won a significant appellate victory when the U.S. Court of Appeals for the Second Circuit affirmed the district court’s dismissal of False Claims Act “qui tam” claims brought against AIG. Plaintiff alleged that AIG defrauded the government by failing to disclose ties to Mafia-controlled businesses while settling regulatory actions in 2006 and transacting with the U.S. government during the 2008 financial crisis.

The Second Circuit’s decision rested on plaintiff’s failure to plead a false claim. Specifically, the Court held the complaint’s “sweeping allegations of misconduct” did not “plausibly suggest that AIG or any of its co-Defendants presented ‘a false or fraudulent claim for payment or approval’ within the meaning of” the False Claims Act. The Court also held the complaint’s “wildly speculative contentions – that, had the government known of AIG’s varied wrongdoing and misrepresentations, it would not have entered into the 2006 settlement agreement” or “undertaken its bailout of AIG following the 2008 financial crisis” – did not “allege a ‘false record or statement’ with particularity, let alone one that is ‘material to a false or fraudulent claim.’”

The Weil team was led by Securities Litigation partner Robert Carangelo and Complex Commercial Litigation partner Lori Pines, and included associates Robert Ruff and Zachary Taylor.

Legalese