Coventry First Files Lawsuit Against AIG Affiliate

FORT WASHINGTON, Pa., Sept. 9, 2014 /PRNewswire/ -- Coventry First today issued the following statement in connection with lawsuits filed by Coventry First and Lavastone Capital, a subsidiary of AIG:

"We are disappointed by AIG's breaches of our agreements, and by our need to resort to litigation to remedy those breaches. 

In a retaliatory move, AIG brought a suit against Coventry. We are astounded that AIG would bring a lawsuit that as AIG knows, rests on a fiction.  AIG claims to have been unaware of practices that were documented and acknowledged through a process that AIG requested.  Further, every year, AIG's independent internal audit group audited its transactions with Coventry First, fully aware of and focused on the very practices it now claims were fraudulent, and found no violation of the agreements between the parties. 

AIG's lawsuit also is an attempt to negotiate by litigation.  In an effort to rewrite long-standing agreements that it now finds onerous, AIG has concocted allegations to escape contractual provisions that limit its ability to resell policies in the tertiary market.  

AIG's complaint is a cynical attempt to distract its shareholders from its own breaches and its failure to disclose the contract restrictions it seeks to escape. These limitations have an estimated value to the portfolio, and to Coventry First, of $700 million.

Going forward, Coventry will aggressively prosecute its lawsuit against AIG, defend itself against AIG's retaliatory lawsuit, and require AIG to adhere to all contract provisions in the existing business agreements."

About Coventry

Coventry created the secondary market for life insurance in the U.S.  By bridging insurance and capital markets, the company pioneered the life settlement industry and opened a new class of longevity-based assets for institutional investors worldwide.  Today, Coventry is a global financial services firm leading the development of a robust longevity market. www.coventry.com

Contact 

Lesley AronchickCoventry
877-836-8300
laronchick@coventry.com

SOURCE Coventry