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You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of May 5, 2015 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
You must register to view and download the Settlement Notice and Settlement Proof.
The major securities in this settlement are: American International Group Inc common stock (NYSE: AIG); corporate units issued in May 2008; two series of subordinated debentures issued in June 2007 (Series A-4) and in December 2007 (Series A-5); and six major bond offerings between October 2006 and December 2007. In addition, there were approximately 60 other bond and structured note offerings made during the settlement class period, many of which were much smaller in size and sold to a limited number of investors. A full listing of the American International Group Inc securities in the case is at pages 10-11 of the American International Group Settlement Proof link found above.
October 7, 2014 - The court preliminarily approved the settlement.
September 12, 2014 - A stipulation of settlement was filed by the parties.
September 27, 2010 - The court denied the defendants' motions to dismiss.
August 5, 2009 - A motion to dismiss the consolidated complaint was filed.
May 19, 2009 - A consolidated complaint was filed.
January 15, 2009 - Another investor filed a complaint.
December 12, 2008 - Another investor corrected and re-filed a complaint.
December 4, 2008 - Another investor filed a complaint.
October 24, 2008 - Another investor filed a complaint.
October 9, 2008 - Another investor filed a complaint.
June 17, 2008 - Another investor filed a complaint.
June 4, 2008 - Another investor filed a complaint.
May 21, 2008 - An investor in shares of American International Group Inc (NYSE: AIG) filed a lawsuit in the U.S. District Court for the Southern District of New York against American International Group Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 11, 2007 and May 9, 2008.
The complaint alleges that, between May 11, 2007 and May 9, 2008, American International Group Inc 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 American International Group Inc subsidiary American International Group Financial Products, violated Federal Securities Laws by issuing false and misleading press releases, financial statements, filings with the SEC and statements during investor conference calls. The plaintiff 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.
The complaint further alleges the defendants repeatedly reassured investors that American International Group Inc 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 American International Group Financial Products’s “super senior” credit default swap (”CDS”) portfolio, making numerous statements that this portfolio was secure and that American International Group Inc’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 American International Group Inc’s financial condition and American International Group Inc’s exposure to the mortgage market when, on February 11, 2008, American International Group Inc 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 American International Group Inc 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, American International Group Inc disclosed that the market valuations on the CDS portfolio would increase to $11.5 billion and revealed for the first time that American International Group Inc 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 American International Group Inc was expecting actual losses on the portfolio to be about $2.4 billion.