Labaton Sucharow represents the Lead Plaintiff Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, and Ohio Police & Fire Pension Fund, 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 the Honorable Deborah A. Batts in the U.S. District Court for the Southern District of New York.

The case alleges numerous securities violations against American International Group (“AIG”) and twenty-one other defendants, including Maurice R. “Hank” Greenberg, AIG’s former long-time Chairman and CEO; PricewaterhouseCoopers, 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. 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.

The Court has ruled on all outstanding motions to dismiss and has denied twenty-one of them in their entirety. The Court's denial of Gen Re’s motion to dismiss was particularly significant. Gen Re had argued that its alleged misconduct amounted to merely “aiding and abetting,” which is a claim that can only be brought by the Securities and Exchange Commission and not by private plaintiffs. The Court rejected this argument, relying on newly developing precedent, to find that Gen Re could be held liable as a primary violator for scheme liability under the Securities Exchange Act.

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 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.

On July 16, 2010, Ohio Attorney General Richard Cordray announced that an agreement on the terms of a proposed $725 million settlement had been reached, which, if approved by the Court, would resolve the Ohio Funds' claims against AIG and certain individual AIG directors and officers. Pursuant to this agreement, AIG will make an initial payment of $175 million after entry of a court order granting preliminary approval of the settlement. The remaining $550 million of the settlement amount may be funded by AIG through one or more common stock offerings.

Pursuant to an Order issued by the Court on July 29, 2010, this action has been stayed in contemplation of the proposed settlement.