PHILADELPHIA, Nov. 3 2004 LAWFUEL – Class action, law, legal, litigation news— The law firm of Spector, Roseman & Kodroff, P.C. announces that it filed a securities class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of American International Group, Inc. (“AIG” or the “Company”) (NYSE: AIG – News) between October 28, 1999 through October 13, 2004, inclusive (the “Class Period”).
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing false statements contained in SEC filings and press releases during the Class Period which artificially inflated the price of AIG securities. The complaint specifically alleges that the Company failed to disclose and misrepresented the following material adverse facts: (1) that AIG entered into and concealed illegal contingent commission agreements that it entered into with other insurance companies, including Marsh, Inc., a subsidiary of Marsh & McLennan, Inc.; (2) that AIG engaged in bid-rigging whereby the Company agreed to provide brokers with artificial quotes which were not justified by underwriting analysis; (3) that as a result of the bid-rigging, AIG guaranteed itself material amounts of business; (4) that AIG failed to disclose that it had entered into partnerships with other insurance companies, which was contrary to its previous statements; and (5) that as a result of this illegal scheme, the Company materially overstated and artificially inflated AIG’s earnings, income, and earnings per share.
On October 14, 2004, New York Attorney General Eliot Spitzer (“Spitzer”) filed a suit against Marsh & McLennan Inc., alleging that it steered unsuspecting clients to insurers with whom it had lucrative payoff agreements, and that the firm solicited rigged bids for insurance contracts. Also named was AIG as an alleged participant in steering and bid-rigging. It was also revealed that two AIG executives, Karen Radke, a senior vice president, and Jean-Baptist Tateossian, a manager, had pled guilty to charges related to the probe. As a result of these disclosures, on October 14, 2004, shares of AIG fell $6.99 per share, or 10.43 percent, on unusually high trading volume of more than 48 million shares traded, to close at $60.00 per share. On October 15, 2004, an additional $2.15 per share or 3.58 percent fell, on more than 60 million in volume, to close at $57.85 per share.
If you purchased AIG securities during the Class Period, you may, no later than December 14, 2004, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in AIG securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
CONTACT: Robert M. Roseman – (888) 844-5862