Wolf Popper LLP, Interim Co-Lead Counsel, is prosecuting an action brought under the federal pension law (the “Employee Retirement Income Security Act” or “ERISA”), on behalf of the participants and beneficiaries of the American International Group, Inc. (“AIG”) Incentive Savings Plan (the “Plan”), who held and/or purchased AIG stock (NYSE: AIG) in their Plan accounts.
On March 31, 2011, the Honorable Laura Taylor Swain of the United States District Court for the Southern District of New York denied in large part Defendants’ motions to dismiss the consolidated amended complaint. While the Court dismissed claims on behalf of the participants and beneficiaries of the CommoLoco Thrift Plan, the Court allowed the bulk of the claims on behalf of the participants and beneficiaries of the American International Group. Inc. Incentive Savings Plan and the American General Agents’ & Managers’ Thrift Plan to continue. In upholding Plaintiffs’ claims, Judge Swain stated “Plaintiffs have sufficiently alleged that AIG and the Director Defendants were aware of the increasingly risky financial position maintained by AIG, material weaknesses in AIG’s financial health and the potential impending erosion of the value of AIG's stock” and that “Plaintiffs have…sufficiently alleged that, had there been an investigation triggered by…[the warning signs alleged in Plaintiffs’ complaint]…, it would have demonstrated that AIG stock had become an imprudent investment.”