AIG 2013 Annual Report Download - page 308

On April 26, 2013, the Court granted a motion for judgment on the pleadings brought by the defendants. The Court’s
order dismissed all claims against the outside auditors in their entirety, and it also reduced the scope of the
Securities Act claims against AIG and defendants other than the outside auditors.
On September 23, 2013, at the request of the parties, the Court terminated lead plaintiff’s motion for class
certification without prejudice to reinstatement.
On January 30, 2014, the Court stayed proceedings in the Consolidated 2008 Securities Litigation pending a decision
in Halliburton Co. v. Erica P. John Fund, Inc., No. 13-317 (U.S. Nov. 15, 2013), in which the U.S. Supreme Court will
consider the validity of, and what is needed to invoke or rebut, the fraud-on-the-market presumption of reliance
necessary for certification of a class of claims under Section 10(b) of the Exchange Act. We have accrued our
current estimate of probable loss with respect to this litigation.
Individual Securities Litigations. On November 18, 2011, January 20, 2012, June 11, 2012, August 8, 2012 and
May 17, 2013, September 13, 2013, and September 16, 2013, seven separate, though similar, securities actions
were filed in the Southern District of New York by the Kuwait Investment Authority, various Oppenheimer Funds,
eight foreign funds and investment entities led by the British Coal Staff Superannuation Scheme, Pacific Life Funds
and Pacific Select Fund, the Teachers Retirement System of the State of Illinois, 12 foreign funds and management
companies, and GIC Private Limited against AIG and certain directors and officers of AIG and AIGFP (the action by
the British Coal Staff Superannuation Scheme also names as defendants AIG’s outside auditors and the underwriters
of various securities offerings; the action by GIC Private Limited only names AIG as a defendant). The parties have
agreed to stay discovery in these actions until the earlier of (i) the Court deciding the motion for class certification
pending in the Consolidated 2008 Securities Litigation following 30 days’ notice from any party in their respective
action, (ii) the preliminary approval of any settlement in the Consolidated 2008 Securities Litigation, (iii) February 27,
2014, or (iv) such earlier or other date as the Court may order.
On August 6, 2013, two separate, though similar, securities actions were brought by 25 funds (collectively, the
Dow 30SM plaintiffs) and the Regents of the University of California, against AIG and certain officers of AIG and
AIGFP. The Dow 30SM action was filed in the Northern District of Illinois and the action filed by the Regents of the
University of California was filed in the Northern District of California. On February 18, 2014, the parties in each case
filed stipulations to transfer the Dow 30SM and the Regents of the University of California actions to the Southern
District of New York, which transfers are pending court approval. We have accrued our current estimate of probable
loss with respect to 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. The Court subsequently consolidated these eight actions as In re
American International Group, Inc. ERISA Litigation II. On September 4, 2012, lead plaintiffs’ counsel filed a second
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 second
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 November 20, 2012, defendants filed motions to dismiss the second consolidated amended complaint. On
May 24, 2013, the parties informed the Court of a mediation scheduled for August 21-22, 2013, and requested that
the Court defer consideration of defendants’ motions pending the outcome of the mediation. On the same day, the
Court granted the parties’ request, terminating defendants’ motions without prejudice to reinstatement on request
following the August mediation, if necessary. On August 26, 2013, the parties informed the Court that the mediation
did not result in a resolution of the action, and defendants requested that the Court reinstate their motions to dismiss.
On September 4, 2013, the Court reinstated defendants’ motions to dismiss.
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AIG 2013 Form 10-K290
ITEM 8 / NOTE 15. CONTINGENCIES, COMMITMENTS AND GUARANTEES
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