August 19, 2009

Couple sues AIG for Madoff loses

Two investors are suing AIG for failing to honor a fraud protection provision in their homeowner's policy after they lost money to Bernie Madoff, Dow Jones reports. Robert and Harlene Horowitz had invested with Madoff's firm since 1997. In the lawsuit, filed today, they claim AIG has "refused to pay for amounts beyond any initial investments with Madoff and has denied claims related to 'any alleged gains, growth or appreciation,'" the news agency writes.

The lawsuit is seeking class-action status for AIG policy holders with fraud protection on their homeowner's policies and lost money to Madoff.

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