Gilman and Pastor, LLP Announces Filing of Class Action Lawsuit Against American International Group, Inc. and Investment Banking Firms


BOSTON, Jan. 29, 2009 (GLOBE NEWSWIRE) -- Notice is hereby given that Gilman and Pastor, LLP filed a lawsuit on January 15, 2009 in the United States District Court for the Southern District of New York seeking class action status on behalf of purchasers of American International Group, Inc. ("AIG") Medium-Term Notes, Series AIG-FP ("Notes") issued by AIG pursuant and/or traceable to AIG's public offerings of Notes pursuant to a prospectus dated July 24, 2006 and a series of prospectus supplements (the "Offering Documents"), during the period from November 17, 2006 through April 10, 2008. AIG issued a prospectus supplement for each of the 59 series of Notes offered for sale, commencing with the prospectus supplement for FP-1 on November 17, 2006.

The Complaint names as defendants AIG, several investment banking firms that acted as sales agents for the Note offerings, and certain directors and officers of AIG, and asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933.

The Notes were offered and sold to the public through various investment banking firms and broker-dealers, including the following: AIG Financial Securities Corp., ABN AMRO Incorporated, Banca IMI S.p.A., Banc of America Securities LLC, Barclays Capital, Inc., Bear Stearns & Co., Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Capital Markets, Inc., Calyon Securities (USA) Inc., Citigroup Global Markets, Inc., Credit Suisse Securities (USA) LLC, Daiwa Securities America, Inc., Daiwa Securities SMBC Europe Limited, Deutsche Bank Securities, Inc., Goldman Sachs & Co., Greenwich Capital Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc., McDonald Investments Inc., Mitsubishi UFJ Securities International plc, Morgan Stanley & Co. Incorporated, Nomura Securities International, Inc., RBC Capital Markets Corporation, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA), LLC, UBS Securities LLC, and Wachovia Capital Markets, LLC.

The Complaint asserts that the Offering Documents were materially false and misleading in failing to disclose material facts relating to the severely deteriorating financial condition of AIG at the time of the offering and that when such facts were disclosed, the market value of the Notes declined substantially. In particular, the Offering Documents failed to disclose: 1) that AIG's significant exposure to the subprime mortgage market as a result of AIG's extensive holdings in subprime mortgage-backed securities constituted a serious and material risk to AIG's creditworthiness and credit standing; 2) that AIG's exposure from its sale of credit default swaps constituted a serious and material risk to AIG's creditworthiness and credit standing; and 3) that these serious risks and exposures adversely affected the market value of the Notes, which declined substantially upon disclosure of this adverse information.

If you are a member of the class, or if you purchased the Notes, you may apply to serve as lead plaintiff. The lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. You may apply to be appointed lead plaintiff through Gilman and Pastor LLP. The deadline to make an application for lead plaintiff is March 30, 2009.

If you wish to discuss this case or this notice or have any questions concerning your rights in this matter, contact Kenneth Gilman at 239-598-3541 or David Pastor at 617-742-9700, or by email as follows: kgilman@gilmanpastor.com; dpastor@gilmanpastor.com. Gilman and Pastor has substantial experience in prosecuting securities class actions on behalf of investors and are highly skilled in securities litigation and other types of complex class action litigation. The contact address for Gilman and Pastor is: 63 Atlantic Avenue, 3d Floor, Boston, MA 02110.



            

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