FOR IMMEDIATE RELEASE: July 19, 2010
Labaton Sucharow LLP Announces 10th Largest Securities Class Action Settlement in United States History on Behalf of Ohio Attorney General’s Office
NEW YORK (July 19, 2010) - Labaton Sucharow LLP, on behalf of the Ohio Attorney General’s Office and the three Ohio public pension funds, has announced a further partial proposed settlement of the American International Group, Inc. (AIG) Securities Class Action in the amount of $725 million. Together with three other proposed settlements of $72 million with General Reinsurance Corporation, a $97.5 million settlement with PricewaterhouseCoopers LLP and a $115 million settlement with CEO Maurice R. "Hank" Greenberg and other AIG executives (Howard I. Smith, Christian M. Milton and Michael J. Castelli) and related corporate entities (C.V. Starr & Co., Inc. and Starr International Co., Inc.), the four settlements total $1.0095 billion, which if approved, will end the litigation.
Under the most recent proposed settlement, AIG will pay $175 million within 10 days of the court’s approval. The remaining $550 million will be raised through a public stock offering during the spring of 2011.
Labaton Sucharow LLP, and Hahn Loeser & Parks LLP are counsel for the Attorney General’s Office as well as: the Ohio Public Employees Retirement System (OPERS), the State Teachers Retirement System of Ohio, and the Ohio Police and Fire Pension Fund.
“This historic settlement is an excellent result for all shareholders harmed by AIG’s misconduct, including Ohio’s teachers, firefighters, police officers, and public employees. Ohio is determined to send a strong message to the marketplace that companies who don’t play by the rules will pay a steep price,” said Richard Cordray, Ohio Attorney General.
“The OPERS Board of Trustees has been an active participant in securities litigation cases on behalf of our members and retirees,” said Ken Thomas, OPERS board chair. “This is a fiduciary responsibility that the board takes very seriously, and it is consistent with past actions the board has taken to encourage corporate governance reform and to seek compensation for unlawful behavior. We intend to continue an aggressive posture to protect the integrity of the marketplace for all investors and the citizens of Ohio.”
William J. Estabrook, Executive Director of the Ohio Police and Fire Pension Fund said: “Our Board of Trustees authorized this action on behalf of Ohio’s police and firefighters not just to recover our fund’s losses, but to help ensure the integrity of the public markets on which both institutional and private investors rely. We are pleased that after years of fighting for this principle the Attorney General was able to secure a monetary expression that the corporate behavior at issue in this litigation is unacceptable and will not be tolerated.”
“We are very pleased with this recovery for AIG investors who suffered losses as a result of the conduct that adversely affected the United States and global financial systems. This result will help to compensate OPERS, the State Teachers Retirement System of Ohio, and the Ohio Police and Fire Pension Fund,” said Labaton Sucharow Senior Partner Thomas A. Dubbs.
The three funds, which manage well over $100 billion, provide benefits to Ohio’s state and local government, police officers, firefighters, teachers, employees, and retirees.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country’s premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for over 45 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com