Class Action

S.E.C. to Investigate AIG

By classlawblog

According to the N.Y. Times, the U.S. Securities and Exchange Commission (SEC) is investigating whether American International Group, Inc. (AIG), a prominent insurance and financial services organization, overstated the value of contracts linked to subprime mortgages.

The investigation will probe into the way AIG valued credit default swaps, including those backed by subprime mortgages. AIG has previously been under investigation by the SEC. In 2006, AIG entered into a settlement agreement for approximately $1.6 billion with the SEC, the New York State Attorney General, and the New York State Insurance Department when two former AIG executives were accused of using fraudulent accounting tactics and misleading investors and regulators.

Full post as published by ClassLawBlog.com on June 14, 2008 (boomark / email).