AIG 2011 Annual Report Download - page 325

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AIG and certain directors and officers of AIG and AIGFP by the Kuwait Investment Office and various
Oppenheimer Funds, respectively.
On May 19, 2009, lead plaintiff in the Consolidated 2008 Securities Litigation filed a consolidated complaint on
behalf of purchasers of AIG Common Stock during the alleged class period of March 16, 2006 through
September 16, 2008, and on behalf of purchasers of various AIG securities offered pursuant to AIG’s shelf
registration statements. The consolidated complaint alleges that defendants made statements during the class
period in press releases, AIG’s quarterly and year-end filings, during conference calls, and in various registration
statements and prospectuses in connection with the various offerings that were materially false and misleading and
that artificially inflated the price of AIG Common Stock. The alleged false and misleading statements relate to,
among other things, the Subprime Exposure Issues. The consolidated complaint alleges violations of Sections 10(b)
and 20(a) of the Exchange Act and Sections 11, 12(a)(2), and 15 of the Securities Act. On August 5, 2009,
defendants filed motions to dismiss the consolidated complaint, and on September 27, 2010, the Court denied the
motions to dismiss.
On November 24, 2010 and December 10, 2010, AIG and all other defendants filed answers to the consolidated
complaint denying the material allegations therein and asserting their defenses.
On April 1, 2011, the lead plaintiff in the Consolidated 2008 Securities Litigation filed a motion to certify a
class of plaintiffs. On November 2, 2011, the Court terminated the motion without prejudice to an application for
restoration.
As of February 23, 2012, plaintiffs in the Consolidated 2008 Securities Litigation have not specified an amount
of alleged damages, discovery is ongoing and the Court has not determined if a class action is appropriate or the
size or scope of any class. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if
any, arising from the litigation.
As of February 23, 2012, the actions initiated by the Kuwait Investment Office and various Oppenheimer Funds
are in their early stages, no discussions concerning potential damages have occurred and the plaintiffs have not
specified an amount of alleged damages in their respective actions. As a result, AIG is unable to reasonably
estimate the possible loss or range of losses, if any, arising from these litigations.
ERISA Actions – Southern District of New York. Between June 25, 2008, and November 25, 2008, AIG, certain
directors and officers of AIG, and members of AIG’s Retirement Board and Investment Committee were named
as defendants in eight purported class action complaints asserting claims on behalf of participants in certain
pension plans sponsored by AIG or its subsidiaries. On March 19, 2009, the Court consolidated these eight actions
as In re American International Group, Inc. ERISA Litigation II. On June 26, 2009, lead plaintiffs’ counsel filed a
consolidated amended complaint. The action purports to be brought as a class action under the Employee
Retirement Income Security Act of 1974, as amended (ERISA), on behalf of all participants in or beneficiaries of
certain benefit plans of AIG and its subsidiaries that offered shares of AIG Common Stock. In the consolidated
amended complaint, plaintiffs allege, among other things, that the defendants breached their fiduciary
responsibilities to plan participants and their beneficiaries under ERISA, by continuing to offer the AIG Stock
Fund as an investment option in the plans after it allegedly became imprudent to do so. The alleged ERISA
violations relate to, among other things, the defendants’ purported failure to monitor and/or disclose certain
matters, including the Subprime Exposure Issues. On September 18, 2009, defendants filed motions to dismiss the
consolidated amended complaint.
On March 31, 2011, the Court granted defendants’ motions to dismiss with respect to one plan at issue, and
denied defendants’ motions to dismiss with respect to the other two plans at issue.
AIG 2011 Form 10-K 311