AIG sued by Cedar Rapids, Iowa flood victim.

Steve Lombardi

Attorney
(866) 735-1102 Ext 335

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Penford Products Co. in eastern Iowa has sued AIG for failing to pay flood related claims amounting to $30 million dollars. Penford filed claims for some $50 million in property damage but AIG has paid only $20 million.

Penford is a supplier of chemically modified specialty starches. Penford’s flood recovery updates are posted on the company website. Penford is listed on the Nasdaq as PENX.

For those not familiar with the flooding that took place this past year follow the links below. It was incredible and above the 500 year flood plain levels.

Sorry but part of me is laughing. This is so ironic in several ways. First, welcome to what personal injury claimants have put up with for years. I’ve done this for over 28 years and my clients have put up with stalling tactics for the entire time. If a $100,000 claim will cause stalling I can’t imagine the stall tactics when $50 million in claims are on the line. Penford carries $300 million in property insurance.

Second, I think about AIG (Arrogance, Incompetence and Greed) executives all getting bonuses of $165 million dollars yet they don’t pay insured claims. Corporate America is doing to themselves and yet they want to blame injured people for being greedy by asking for non-economic damages. It’s really disgusting how shame is no longer a part of the American fabric.

All I can say is welcome to the club.