US Taxpayers Now (Indirectly) Involved In Duke University Sex Scandal

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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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Things AIG Employees Say: “Make sure you grab a bite to eat before this one does! He’s been known to clean out a Danish platter!"

What were AIG employees doing in April 2008? Carelessly writing CDS on enormous quantities of mortgage-backed securities and (allegedly) laying the groundwork for being sued over "racist [and sizeist?] taunts," apparently. An obese black lawyer filed a federal lawsuit yesterday against insurance giant AIG and an ex-supervisor, saying his white boss yelled out “Hey! Hey! Hey! It’s Fat Albert!” and other racist taunts. Earl Brown, 43, an Ivy league-educated lawyer, claimed in the civil-rights suit that the ex-boss, John Hornbostel, 49, peppered him with racist remarks and cruel jokes about his weight for years before he was canned without cause. “Make sure you grab a bite to eat before this one does! He’s been known to clean out a Danish platter,” Hornbostel yelled about Brown during a meeting in April 2008, the suit claims. Hornbostel then allegedly walked away humming the tune to the “Fat Albert and the Cosby Kids” animated TV show. Hornbostel seems to have ended up at a hedge fund post-AIG. It's unclear if he's tried out any new material on his new colleagues. Obese lawyer sues supervisor and AIG for ‘Fat Albert’ insults [NYP via ATL]