Cosmetics company loses bankruptcy battle

Cosmetics Plus sued its insurer, American International Group (AIG), after the insurer failed to pay on an insurance policy for two business locations lost in the September 11 attacks. Cosmetics Plus won a $350,000 million judgment against AIG that should have been paid to the company. However, its attorneys, members at the now bankruptcy Dreier law firm, did not immediately turn over the proceeds to Cosmetics Plus and the money became part of the Dreier’s bankruptcy filing. An appeals court has ruled that the money will stay within the Dreier bankruptcy estate and Cosmetics Plus is not entitled to the settlement money.

For more read, “Court rules AIG settlement belongs to Dreier law firm estate.”

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