CORAL SPRINGS, Fla., May 12, 2005 (PRIMEZONE) -- The law firm of Mager White & Goldstein, LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of participants or beneficiaries of the American International Group, Inc. ("AIG") 401(K) Savings Plan (the "Plan") (NYSE:AIG). The lawsuit cites AIG's violations of the Employee Retirement Income Security Act (ERISA) resulting in the decreased value of AIG stock held by current and past employees of AIG through the Plan.
The lawsuit charges that AIG's financial officers breached their fiduciary responsibilities by leading participants to invest in AIG stock between November 1, 1998 and the present (the "Class Period"), while failing to disclose improper business practices, and disseminating false and misleading financial statements to investors. Specifically, since February 2005, AIG has admitted to a number of accounting errors in several areas of the Company's operations which led to financial statements that falsely gave the appearance of financial growth. As a result, AIG has delayed issuance of its Annual Report. AIG has also admitted that it anticipates reducing its net worth by over $2 billion and restating its financial results for the period 2000 through 2004.
AIG claimed to be experiencing strong growth and demonstrating positive results. The true facts which were concealed from investors revealed that AIG was engaged in a plan in which: (a) AIG paid illegal "contingent commissions" or kick-backs to certain brokers for business "steered" to AIG; and (b) AIG had major involvement in a "bid-rigging" scheme devised to protect itself and certain other insurance companies from competition. These illegal business practices resulted in gross overstatements of AIG's income and revenue which led to the Company's inflated stock price. The aim of this litigation is to recover damages sustained by Plan participants or beneficiaries. Your ability to share in any recovery is not affected by whether or not you serve as lead plaintiff in the case. You may retain Mager White & Goldstein, LLP, or other counsel, to represent you in this action.
If, as a current or former employee of AIG (or its subsidiaries) you bought or held AIG stock through the AIG Plan during the period November 1, 1998 to the present, and you are interested in recovering losses or providing information to assist us in pursuing these allegations, please contact the following attorneys:
Jayne Arnold Goldstein Ann D. White 2825 University Drive, Suite 350 One Pitcairn Place, Suite 2400 Coral Springs, Florida 33065 165 Township Line Road 954-341-0844 Telephone Jenkintown, Pennsylvania 19046 866-274-8258 Toll Free 215-481-0273 Telephone 954-341-0855 Fax 866-481-0272 Toll Free E-mail: jgoldstein@mwg-law.com 215-481-0271 Fax E-mail: awhite@mwg-law.com
Mager White & Goldstein has offices in Pennsylvania and Florida. The firm's attorneys have been litigating complex commercial matters for over twenty years. Please visit the Mager White & Goldstein website (http://www.mwglawfirm.com) for additional information about the firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.