AIG Shareholder Claims

Class actions claims have been filed against AIG for violating securities law by lying to investors about AIG's exposure in the subprime mortgage crisis.

AIG has lost about $11 billion on credit default swaps linked to mortgages; it reported a $7.8 billion first quarter loss earlier this month. The company's stock price has been cut in half since reaching a high of $72.65 last year.

John Keane, executive director of the pension fund, says AIG's problems have cost the fund between $700,000 and $800,000. All along, the company assured investors it could weather the subprime mortgage crisis, the complaint asserts. In one August 2007 conference call with investors, Joseph Cassano, former head of AIG's derivatives unit, told investors he could not foresee losing even $1 as the credit market plunged.

However, in February, PricewaterhouseCoopers, serving as AIG's auditor, discovered big problems in the company's management, oversight and financial reporting. The findings forced AIG to revalue its credit default portfolio, leading to the announcement of billions of dollar in losses.

"They were saying we were not going to lose a buck," Keane says. "When they say things like this, even when things look shaky, it gives you confidence." If you are interested in pursuing a claim for damages, loss of stock value and other claims, call The Levensten Law Firm, PC to discuss your rights.