AIG set to be involved in Elon Musk defamation case: Bloomberg

Major insurance player American International Group Inc. may get wrapped up in a defamation case involving billionaire Elon Musk, according to a report on Bloomberg.

Musk, the chief executive of electric car maker Tesla, has told lawyers representing the British cave diver suing him that he’s financially illiquid, according to a legal filing. An attorney for Vernon Unsworth, who sued for defamation last year after Musk attacked him on Twitter, pressed the Tesla CEO last month for information on all insurance policies applicable to claims made in the suit.

An exhibit filed to the court shows attorneys arguing over information regarding Musk’s ties with AIG.

“Given Musk’s sworn testimony that he is financially illiquid, Mr. Unsworth is entitled to know whether AIG has accepted coverage of the claims, denied coverage of the claims, or has reserved its rights to contest coverage of the claims,” Unsworth’s attorney has written. Musk’s lawyer wrote back the same day that AIG had reserved rights, without elaborating, Bloomberg reported.

AIG declined to comment on the filing. “Mr. Musk’s insurance carrier was notified of the money-grab,” Alex Spiro, Musk’s lawyer, said in an emailed statement. “It is a non-event.”

While Musk has a $23.6 billion personal fortune that ranks him number 38 on the Bloomberg Billionaires Index, he’s relatively cash-poor. Much of his wealth is from his stake in rocket company Space Exploration Technologies Corp., and he has said he has no plans to sell any shares.

A trial of the defamation case is scheduled to begin in December in Los Angeles.

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