When a group of Duke University lacrosse students were wrongfully accused of sexually assaulting a stripper a few years back, did you watch from the sidelines, wracking your brain as to how you could somehow get in on the action? You probably didn’t want to be one of the main players but when the story came up in conversation you didn’t want to comment as simply someone who’d read about it. A bit role was all you needed- just enough to speak authoritatively, like an insider, and/or to assure a mention in the closing credits of some sort of made for TV movie. If you’re taxpaying citizen of the United States, today’s your lucky day.

American International Group Inc. has resolved a lawsuit filed by Duke University over expenses tied to the school’s dispute with lacrosse team members falsely accused of sexually assaulting a stripper.

The university and the unit of New York-based AIG that sold insurance coverage to Duke “agree to the dismissal” of the claims, according to a joint filing yesterday in U.S. District Court in Durham, North Carolina. The court document didn’t disclose terms of the settlement. The school was seeking reimbursement of costs from confidential settlements with three members of the team who were exonerated after they were accused of rape by a woman invited to a 2006 party. AIG, the bailed-out life and property-casualty insurer, had offered $5 million to Duke, Joseph O’Neil, a lawyer for the insurer, said in December 2008.

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 athletes said Duke remained silent during the probe even though the university had evidence they were innocent.

Bailing this company out has finally paid off!

AIG Resolves Duke University’s Lacrosse-Stripper Scandal [BusinessWeek via BusinessInsider]

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Comments (26)

  1. Posted by Never forget | February 23, 2011 at 10:47 PM

    Too bad. I hope the settlement reserves AIG’s right to reclaim all fees paid when it’s shown at trial Duke’s actions were knowing and intentional.

  2. Posted by Gentleman Trader | February 23, 2011 at 11:39 PM

    what?!?!? It was just a stripper!

    -R. Seligman

  3. Posted by Muddlark77 | February 24, 2011 at 12:00 AM

    The Dept. of Justice had every opportunity to intervene and stop the railroading of innocent persons, and would have done so had the lacrosse
    defendants been of any different ethnicity, gender, or class. (Had the Klan threatened the
    defendants in court as did the Black Panthers, had the DA said he didn’t want his town to be
    known as a place where black lacrosse players could rape white girls, had inflammatory
    meetings and rallies been held against innocent black players, the DOJ would have been on scene
    in a millisecond.)

    If PC correctness means that “equal justice under law” is a fiction, then let the taxpayers
    pay. Maybe next time the DOJ will take its job of protecting the constitutional rights of
    all our citizens, a bit more seriously.

  4. Posted by Kosta | February 24, 2011 at 12:41 AM

    Duke’s President Broadhead is a typical northeast PC mongering liberal, and the Dean of the Business School Blair Shephard is a Canadian and certifiably socialist. Even such a great place as Duke has its share of useless idiots, the administration’s handling of the crisis was a disgrace. They were ready to even shutter the whole lax program which came back and won the NCAAs.

  5. Posted by Publius | February 24, 2011 at 4:24 AM

    The Duke players were not guilty of rape, but probably could have been convicted of sexual assault if Nifong had conducted a more careful investigation of the incident. It’s a shame he ruined a good case by overcharging. You ought to get your story straight, though. Sexual assault and rape are two different offenses and being exonerated of the latter is not being exonerated of the former. The Duke lax team was being kicked out of its house because its members had the most extensive police record of any sports team on campus. It was understandable that at least some of them could have raped someone. Still, Nifong should have looked for evidence rather than gone with this reasonable belief. Lacrosse is an ugly culture, not because the players are more dangerous, football or hockey players would wipe the floor with them, but because the combination of self-importance and ignorance produces ugliness.

  6. Posted by Anonymous | February 24, 2011 at 4:50 AM

    After careful consideration of your thoughtful addition to the debate, I’d like to rejoinder:

    Fuck you, sideways. They were railroaded, and the fact that you dislike lacrosse, white people, Dookies, or anything else doesn’t excuse the criminal actions of Nifong, Broadhead, or the entire faculty of Duke (of which I presume you might be a member).

  7. Posted by Muddlark77 | February 24, 2011 at 5:17 AM

    On the contrary, the Duke lacrosse team’s record was not worse than any other teams; academically, it was much better. But statistics were manipulated to make it seem worse (example: when TWO incidents of misconduct were reported, and one involved a lacrosse player, it was reported that “50% of such incidents involved lacrosse players”–technically correct, but a “lie by statistic”.) The lacrosse players were even accused of “suspicion of throwing water” in a water fight–terrible by any standard (sarc/off). The team was the most liked by those in Durham whom it mentored; was noted as being liked by groundskeepers and service people; and was virtually unknown on campus (not BMOC), as lacrosse was hardly followed.
    Nifong knew the team was innocent; but contrived in every way to try and force plea bargains or convictions; he had to do so, having committed himself to the community.

  8. Posted by smirti | February 24, 2011 at 2:22 PM

    Lax broooooos!

  9. Posted by DB | February 24, 2011 at 2:47 PM

    Comments 1-8: Too Serious, didn’t read.

  10. Posted by Cool your jets | February 24, 2011 at 4:30 PM

    For posterity: Did Nifong use markers to detail his case?

    -Ping

  11. Posted by Cool your jets | February 24, 2011 at 4:30 PM

    For posterity: Did Nifong use markers to detail his case?

    -Ping

  12. Posted by DouchebagsaysPublius | February 25, 2011 at 2:54 AM

    I’m sorry that some junior high school Lacrosse player broke your heart but I suspect that it was a parole violation for you to be that near someone who is 12 years old. The good news is that you should be able to get a full refund on your tuition from the Intro to the Law community college course that you took. “Probably could have been convicted of sexual assault if Nifong had conducted a more careful investigation of the incident”. There is no evidence to suggest that Nifung didn’t spend enough time investigating the case. The evidence is that a marginal district attorney saw a perfect opportunity to blunt a primary challenge from a minority with this case.

    Remember that using Latin doesn’t make you smart, it only lets other know right away that you are a pretentious douchebag.

  13. Posted by Lacrosse Religion | November 27, 2011 at 3:45 PM

    So we bailed out the insurance company. I suppose that's something. I was happy just watching Duke win the national championship.

    There's a lot of lessons in the greater story of the Duke lacrosse sex scandal.

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