July 19, 2010
Labaton Sucharow Announces 10th Largest Securities Class-Action Settlement in United States History on Behalf of Ohio Attorney General's Office
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In re American International Group, Inc. Securities Litigation

Settled: Pending Court Approval

In one of the most complex securities cases in history, we secured over $1 billion in total settlements, including a landmark $725 million with AIG regarding allegations of bid rigging and accounting fraud.

Starr Settlement: Granted Final Approval on April 11, 2013
Company Settlement: Granted Final Approval on February 3, 2012
PwC Settlement: Granted Final Approval on December 2, 2010
Gen Re Settlement: Pending Court Approval (Fairness Hearing on September 10, 2013)

Background

Labaton Sucharow represents the lead plaintiff Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, and Ohio Police & Fire Pension Fund (“Lead Plaintiff” or the “Ohio Funds”), along with the Attorney General of the State of Ohio, in In re American International Group, Inc. Securities Litigation, a securities fraud class action pending before Judge Batts in the U.S. District Court for the Southern District of New York.

The case alleges numerous securities violations against American International Group (the “Company” or “AIG”) and twenty-one other defendants, including Maurice R. “Hank” Greenberg, AIG’s former long-time Chairman and CEO; PricewaterhouseCoopers (“PwC”), the Company’s outside auditors; and General Reinsurance Corp. (“Gen Re”), a Berkshire Hathaway subsidiary that allegedly structured and executed a $500 million sham reinsurance agreement that allowed AIG to improperly improve its reported reserves (the “Gen Re Transaction”). On May 31, 2005, AIG filed its 2004 Form 10-K, restating the Company’s earnings, reducing its net income from 2000 through 2004 by $3.9 billion, and wiping out $2.26 billion of shareholders’ equity.

Key Rulings

In April and May of 2006, the Court ruled on all outstanding motions to dismiss and denied twenty-one of them in their entirety.

On February 22, 2010, the Court issued a 90-page Opinion granting Lead Plaintiff’s motion for class certification in significant part. The Court certified a litigation class including (1) shareholders who purchased or otherwise acquired shares during the Class Period of October 28, 1999 to April 1, 2005, and who possessed that stock over one or more of the dates of October 14, 2004, October 15, 2004, March 17, 2005, or April 1, 2005, (2) persons and entities who held the common stock of HSB Group at the time HSB Group was acquired by AIG in a stock for stock transaction and (3) persons and entities who held the common stock of American General at the time American General was acquired by AIG in a stock for stock transaction. Defendants and other defined affiliated persons and entities are excluded from the class. The Court appointed Labaton Sucharow and Hahn Loeser & Parks LLP as co-lead counsel for the class.

Settlements

On November 30, 2010, a hearing was held before Judge Batts to determine whether a proposed $97.5 million settlement between the Lead Plaintiff and defendant PwC (the “PwC Settlement”) should be approved. On December 2, 2010, the Court approved the PwC Settlement. The deadlines in the PwC Settlement to submit a Proof of Claim, object to the Settlement or seek exclusion from the Settlement Class have passed.

On January 31, 2012, a hearing was held before Judge Batts to determine whether the proposed $725 million settlement resolving the claims against defendant AIG and certain individual AIG directors and officers (the “Company Settlement” or the “AIG Settlement”) should be approved. On February 3, 2012, the Court approved the Company Settlement. The deadlines in the Company Settlement to submit a Proof of Claim or Release Form, object to the Settlement or seek exclusion from the Settlement Class have passed.

On April 10, 2013, a hearing was held before Judge Batts to determine whether the proposed $115 million Settlement with Hank Greenberg and related defendants (the "Starr Settlement") should be approved. On April 11, 2013, the Court approved the Starr Settlement. The deadlines in the Starr Settlement to submit a Proof of Claim, object to the Settlement or seek exclusion from the Settlement Class have passed.

On May 14, 2013, Judge Batts granted preliminary approval to the $72 million settlement with Gen Re.

If you purchased or otherwise acquired securities issued by AIG during the period from October 28, 1999 through April 1, 2005, inclusive, and were damaged thereby, you must submit a validly completed Proof of Claim with supporting documents by September 12, 2013 in order to receive a payment from the Settlement. If you already submitted a Proof of Claim form in the PwC Settlement, the Company Settlement and/or the Starr Settlement, you do not have to do so again. Instead, you must complete a Release Form.

A hearing will be held on September 10, 2013 at 3:00pm before Judge Batts in the United States District Court for the Southern District of New York, United States Courthouse, 500 Pearl Street, New York, New York. The deadline for objecting to the Settlement or for seeking exclusion from the Class is August 20, 2013.

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Starr Settlement: Please see the links to the right for downloadable copies of the Notice of Proposed Settlement, Motion for Attorneys’ Fees and Expenses Award and Fairness Hearing; the Supplemental Notice of Proposed Settlement and Fairness Hearing; the Proof of Claim form; the Release Form; the Preliminary Approval Order; and the Order and Final Judgment. Additional information is also available on a website maintained by the Settlement Administrator: https://aigsecuritieslitigationstarrsettlement.com/.

Company Settlement: Please see the links to the right for downloadable copies of the Notice of Proposed Settlement, Motion for Attorneys’ Fees and Expenses Award and Fairness Hearing; the Proof of Claim form; the Release Form; the Preliminary Approval Order; and the Order and Final Judgment. Additional information is also available on a website maintained by the Settlement Administrator: https://aigsecuritieslitigationcompanysettlement.com/.

PwC Settlement: Please see the links to the right for downloadable copies of the Notice of Proposed Settlement, Motion for Attorneys’ Fees and Expenses Award and Fairness Hearing; the Proof of Claim form; the Release Form; the Preliminary Approval Order; and the Order and Final Judgment. Additional information is also available on a website maintained by the Settlement Administrator: http://www.aigsecuritieslitigationpwcsettlement.com/.

Gen Re Settlement: Please see the links to the right for downloadable copies of the Notice of Proposed Settlement; the Proof of Claim form and the Preliminary Approval Order. Additional information is also available on a website maintained by the Settlement Administrator: https://aigsecuritieslitigationgenresettlement.com/.