AIG Ended Up Having To Pay Millions For The Duke Lacrosse Stripper Lawsuit

Mike Evans, Reade Seligmann, and Collin Finnerty

AIG ended up having to pay part of the multi-million settlements that Duke University paid to the three lacrosse stars who were accused of raping a stripper the team had hired for one of their parties, Crystal Gail Mangum, back in 2006.Duke suspended the three accused students, Reade Seligmann, Collin Finnerty, and David Evans, and the entire Duke Lacrosse team for two games. And later, they forced the Duke lacrosse team coach, Mike Pressler, to resign.

Then in court, everyone from the lacrosse team was vindicated. But of course, the three players’ reputations were ruined.

And as a result, Duke eventually had to pay undisclosed settlements to each of the students, and thanks to AIG’s involvement, now we have a better idea of how much was paid to each.

As its insurance provider, AIG insures Duke University against costs like investigating an accusation like Mangum’s.

Duke had demanded reimbursement for costs tied to lawsuits by players and another by the team’s former coach over the school’s role in investigating the accusation, according to the November 2008 complaint.

The insurance giant offered the school $5 million in 2008, but apparently that wasn’t enough. The university filed a lawsuit requiring AIG to reimburse them for the settlements it paid to the lacrosse players.

Today, both AIG and Duke agreed to “dismiss” that lawsuit, according to Bloomberg.

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