Class Action

AIG Settles Long-Standing Shareholder Suit

By classlawblog

Four former executives of American International Group, Inc. (AIG) agreed on September 11, 2008 to settle a long-standing shareholder lawsuit for $115 million. The settlement will resolve a suit brought in 2002 by an AIG shareholder that alleged that certain executives and directors breached their fiduciary duties to the company by directing business worth hundreds of millions of dollars in commissions to C.V. Starr, a company formerly affiliated with AIG. Plaintiffs argued that this business should have gone directly to AIG. Payment of the settlement will come partially from an insurance policy covering the former directors and officers and partially from C.V. Starr. This settlement means that the case will not go to trial next week in Delaware, as was scheduled.

Full post as published by ClassLawBlog.com on September 15, 2008 (boomark / email).