A class action lawsuit on Friday was filed against American International Group (AIG) and three AIG executives, on behalf of all people who purchased AIG securities between October 28, 1999 and October 13, 2004, the law firm Stull, Stull & Brody said in a press release.
Defendants named in the suit include AIG Chief Executive Officer Maurice Greenberg, AIG Chief Financial Officer Howard Smith and AIG Senior Vice Chairman of General Insurance Thomas Tizzio.
The lawsuit, filed in U.S. District Court for the Southern District of New York, alleges that the defendants violated the Securities Exchange Act of 1934. More specifically, the complaint alleges that the Company failed to disclose and misrepresented adverse facts, which were known to defendants or recklessly disregarded by them.
In addition, the lawsuit alleges that (1) AIG entered into and concealed illegal contingent commission agreements that it entered into with other insurance companies, including Marsh, Inc., a subsidiary of Marsh & McLennan, Inc.; (2) that AIG engaged in bid rigging whereby the Company agreed to provide brokers with artificial quotes which were not justified by underwriting analysis; (3) that as a result of the bid rigging, AIG guaranteed itself material amounts of business; (4) that AIG failed to disclose that it had entered into “PNC-Style” partnerships with other insurance companies, which was contrary to its previous statements; and (4) that as a result of this illegal scheme, defendants, throughout the Class Period, materially overstated and artificially inflated AIG’s earnings, income, and earnings per share.
The filing of the lawsuit comes just two weeks after New York Attorney General Eliot Spitzer filed a lawsuit against Marsh & McLennan Inc., alleging that it steered unsuspecting clients to insurers with whom it had lucrative payoff agreements, and that the firm solicited rigged bids for insurance contracts.
Spitzer’s complaint also named AIG as an alleged participant in steering and bid rigging. It was also revealed that two AIG executives: (1) Karen Radke, a senior vice president, and (2) Jean-Baptist Tateossian, a manager had pled guilty to charges related to the probe.
Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody.
(via Business Wire)
{ 4 comments }
Attorney General Eliot Spitzer is doing a wonderful job to reveal the dihonesty in the securities business
We support what he has accomplished
http://www.seniorsagainstsecuritiesfraud.com
how does this effect my IRA account? Please tell me if I should be talking to someone about this. Thanks
I FEEL THAT OVER THE PAST 12 YEARS OF BEING A AIG CUSTOMER THAT MY INSURANCE IS TOO HIGH THAT IT SHOULD BE. CAN YOU SEND ME TYHE INFO TO BE IN THIS LAWSUIT./ THAY ARE CHARGING ME 1800 DOLLARS EVERY 6 MONTHS FOR CAR INSURANCE- I BELIEVE SOMETHING IS NOT RIGHT./ CAN YOU PLEASE SEND THE INFO TO JOIN THE LAWSUIT TO
TIMOTHY/BRENDA ADAMS
3900NE173RDCT
SILVER SPRINGS,FLORIDA
34488
1-352-625-4611
CELL-1-352-553-3446
AIG was charging me $2000 semi yearly for car insurance for two automobile with a good driving record. Can a get more information on the law suit if I can be apart of the suit.
Comments on this entry are closed.