Securities Class Action Filed Against American International Group Inc.

MINNEAPOLIS, May 29, 2008 (Lawfuel) — Charles H. Johnson &
Associates announces that a class action has been commenced in the
United States District Court for the Southern District of New York on
behalf of purchasers of American International Group, Inc. (“AIG” or
the “Company”) (NYSE:AIG) publicly traded securities during the period
May 11, 2007 through May 9, 2008 (the “Class Period”).

If you are a member of the proposed Class, you may move the Court to
serve as a lead plaintiff for the Class on or before July 21, 2008. You
do not need to be a lead plaintiff in order to share in any recovery
that may be obtained.

The Complaint alleges that Defendants violated the federal securities
laws by issuing false and misleading press releases, financial
statements, filings with the SEC and statements during investor
conference calls. The Complaint alleges that throughout the Class
Period, Defendants repeatedly reassured investors that AIG had
successfully insulated itself from the recent turmoil in the housing
and credit markets due to its superior risk management. Defendants
touted the security of AIGFP’s “super senior” credit default swap
(“CDS”) portfolio, making numerous statements that this portfolio was
secure and that AIG’s method for accounting for the valuations of this
portfolio accurately reflected its value.

Investors began to learn the truth regarding AIG’s financial condition
and the Company’s exposure to the mortgage market when, on February 11,
2008, the Company disclosed that its outside auditor had determined
that there was “material weakness in its internal control” over the
financial reporting and oversight relating specifically to its
accounting for the CDS portfolio, and that the Company was revising the
loss valuations it previously reported. Under the new valuations,
losses on the CDS portfolio more than quadrupled, from the $1.4 billion
reported on the CDS portfolio just weeks before to over $4.5 billion.
Two weeks later, on February 28, 2008, AIG disclosed that the market
valuations on the CDS portfolio would increase to $11.5 billion and
revealed for the first time that the Company had estimated exposure of
$6.5 billion in liquidity puts written on collateralized debt
obligations linked to the sup-prime mortgage market. Finally, on May 8,
2008, the Company disclosed that market valuation losses on the CDS
portfolio for the quarter climbed an additional $9.1 billion, for a
cumulative loss of $20.6 billion, and that the Company was expecting
actual losses on the portfolio to be about $2.4 billion. As a result of
these disclosures, the price of AIG stock plunged from a Class Period
high of $75.24 per share on June 5, 2008, to $38.37 per share on May
12, 2008.

If you purchased American International Group, Inc. securities during
the Class Period, or have any questions concerning this notice or your
rights with respect to this matter, please contact:

Neal Eisenbraun, Esq. ([email protected])
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685

Scroll to Top