A Billion Dollar Recovery for Class Members and Accountability from Wall Street
In re American International Group, Inc. Securities Litigation
On behalf of our clients, we demand accountability from Wall Street. We will litigate against one of the world’s largest insurers to fight for our cause and win.
Labaton Sucharow earned a huge win on behalf of institutional investors in one of the most complex and challenging litigations in history. We defeated 22 motions to dismiss in a nearly eight-year-long litigation over AIG’s involvement in a market division scheme that included payment of allegedly improper contingent commissions, illegal insurance bid rigging, and accounting fraud, wiping out $2.7 billion in shareholder equity when the company restated.
The Firm secured more than $1.05 billion in total settlements, including a landmark $725 million settlement against the company. Also recovered was a $97.5 million settlement with AIG’s auditors and an additional $115 million settlement with former AIG officers, including former CEO Hank Greenberg, and related defendants, which is still pending before the court. There is also a proposed settlement of $72 million with General Reinsurance Corporation, which was alleged to have been involved in one of the accounting frauds with AIG, pending before the Second Circuit.
In total, the four settlements would provide a recovery of more than $1 billion. This is the tenth-largest recovery ever in a securities class action and the largest in any securities class action since the financial crisis began in September 2008.