 | ||
|
| Home Annual/Quarterly Updates About Us
|
American International Group, Inc. (AIG) Summary: On March 20, 2009, an Order Consolidating AIG Securities Actions, Appointing Lead Plaintiff And Approving Co-Lead Counsel was granted by the court.
According to a law firm press release dated 5/22/2008, a class action lawsuit was filed on behalf the Jacksonville Police and Fire Pension Fund against American International Group, Inc.
The Complaint alleges that during the Class Period, AIG and the individual defendants, including the Chief Executive Officer, Executive Vice President and Chief Financial Officer, Senior Vice President and Chief Risk Officer, and the former head of AIG subsidiary American International Group Financial Products ("AIGFP"), violated the federal securities laws by issuing false and misleading press releases, financial statements, filings with the SEC and statements during investor conference calls. The Complaint alleges that, throughout the Class Period, Defendants repeatedly reassured investors that AIG had successfully insulated itself from the recent turmoil in the housing and credit markets due to its superior risk management. In particular, defendants touted the security of AIGFP's "super senior" credit default swap ("CDS") portfolio, making numerous statements that this portfolio was secure and that AIG's method for accounting for the valuations of this portfolio accurately reflected its value.
The complaint continues, saying investors began to learn the truth regarding AIG's financial condition and the Company's exposure to the mortgage market when, on February 11, 2008, the Company disclosed that its outside auditor had determined that there was "material weakness in its internal control" over the financial reporting and oversight relating specifically to its accounting for the CDS portfolio, and that the Company was revising the loss valuations it previously reported. Under the new valuations, losses on the CDS portfolio more than quadrupled -- from the $1.4 billion reported on the CDS portfolio just weeks before to over $4.5 billion. Two weeks later, on February 28, 2008, AIG disclosed that the market valuations on the CDS portfolio would increase to $11.5 billion and revealed for the first time that the Company had notional exposure of $6.5 billion in liquidity puts written on collateralized debt obligations ("CDOs") linked to the sub-prime mortgage market. Finally, on May 8, 2008, the Company disclosed that market valuation losses on the CDS portfolio for the quarter climbed an additional $9.1 billion, for a cumulative loss of $20.6 billion, and that the Company was expecting actual losses on the portfolio to be about $2.4 billion. As a result of these disclosures, the price of AIG stock plunged from a Class Period high of $75.24 per share on June 5, 2008, to $38.37 per share on May 12, 2008, wiping out tens of billions of dollars in shareholder value and causing damage to the class.
The Complaint alleges that the Defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder and that two Individual Defendants violated Section 20(a) of the Exchange Act.
INDUSTRY CLASSIFICATION:
SIC Code: 6331
Sector: Financial
Industry: Insurance (Prop. & Casualty)
| COMPANY/ISSUER NAME: | American International Group, Inc. |
| COMPANY/ISSUER TICKER: | AIG |
| COMPANY WEBSITE: | http://www.aig.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Jacksonville Police and Fire Pension Fund, et al. v. , American International Group, Inc. et al. | |||||||||||||||||
| |||||||||||||||||
| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint | |||
| Type: Complaint | Date on the document: 5/21/2008 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 5/21/2008 | ||
| Order Consolidating AIG Securities Actions, Appointing Lead Plaintiff And Approving Co-Lead Counsel | |||
| Type: Order of Consolidation | Date on the document: 03/20/2009 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: James Connolly, et al. v. , American International Group, Inc. et al. | |||
| Type: Complaint | Date on the document: 6/4/2008 | ||
| Class Action Complaint | |||
| Case Name and/or Number: Maine Public Employees Retirement System, et al. v. , American International Group, Inc. et al. | |||
| Type: Complaint | Date on the document: 6/17/2008 | ||
WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.
Go to Search page | Go to Case Index page | Back to Top