LITTLE ROCK, Ark., May 4, 2005 (PRIMEZONE) -- Emerson Poynter LLP (www.emersonpoynter.com), a national law firm with offices in Houston, Little Rock, and Seattle, announced today that it has launched an investigation against American International Group, Inc. ("AIG" or the "Company") (NYSE:AIG) for violations of the Employee Retirement Income Security Act of 1974 ("ERISA"). The investigation focuses on investments in Company stock by the AIG Incentive Savings Plan, the American General Agents' and Managers' Thrift Plan, the American General Employees' Thrift and Incentive Plan (which was merged into the AIG Incentive Savings Plan), and the CommoLoCo Thrift Plan (the"Plans") from December 1, 1998 through the present (the "Class Period").
Since February 2005, AIG has admitted to numerous accounting errors in multiple areas of AIG's operations which were intended to improve AIG's financial statements by reporting growth where it did not exist. AIG has delayed issuance of its Annual Report for another thirty days while internal investigations and outside auditors seek to unravel various complex maneuvers. AIG has already admitted that it will likely reduce its net worth by $2.7 billion and restate its financial results for the years from 2000 through 2004. These revelations follow the October 2004 allegations of involvement in Marsh & McLennan Companies' illegal bid-rigging and contingent commission fee scheme.
Emerson Poynter's investigation focuses on concerns that AIG and other fiduciaries for the Plans may have breached their ERISA-mandated fiduciary duties of loyalty and prudence by (1) failing to prudently and loyally manage the Plans' assets by investing a significant amount of the Plans' assets in AIG stock when it no longer was a prudent investment for participants' retirement savings; (2) failing to monitor and provide fiduciary appointees with information that the appointing fiduciaries knew or should have known the monitored fiduciaries needed in order to prudently manage the Plans' assets; (3) failing to provide complete and accurate information to participants and beneficiaries regarding AIG's business prospects and financial performance; and (4) breaching their duty to avoid conflicts of interest.
Emerson Poynter LLP has substantial experience representing Plan Participants in retirement plan class action lawsuits and investors in shareholder lawsuits. The firm represents investors and retirement Plan Participants throughout the nation in such actions as Pfizer, Aon, Enron, Reliant Energy, Goodyear, The Hartford Group, Cardinal Healthcare, ADC Telecommunications, and Winn-Dixie. The firm has offices in Houston, Little Rock, and Seattle, but represents investors and retirement Plan Participants throughout the nation.
If you are a member of the Plans or purchased or held AIG stock through one of the Plans and are concerned about your legal rights, please contact us by calling toll-free at 1-800-663-9817 or via e-mail at epllp@emersonpoynter.com.