NEW YORK, Oct. 10, 2008 (GLOBE NEWSWIRE) -- On October 9, 2008, Gainey & McKenna filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all persons who purchased 7.70% Series A5 Junior Subordinated Debentures (NYSE:AVF) of American International Group, Inc. ("AIG" or the "Company") (NYSE:AIG) from the date of the Company's public offering on December 11, 2007 (the "Offering"), and all purchasers traceable thereto (the "Class Period") against certain officers and directors of AIG and certain Underwriters of the Offering, pursuant to Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. Sec. 77k, 77l and 77o (the "Class"). The Underwriters include Citigroup Global Markets Inc. (NYSE:C), Merrill Lynch & Co., Inc. (NYSE:MER), Morgan Stanley & Co. Incorporated (NYSE:MS), UBS Securities LLC (NYSE:UBS), Wachovia Capital Markets, LLC (NYSE:WB), Bank of America Securities LLC (NYSE:BAC), Bear, Stearns & Co. Inc., The Bear Stearns Companies, LLC, RBC Capital Markets and Wells Fargo Securities (NYSE:WFC).
The Complaint asserts that AIG's Prospectus contained both material misstatements and omissions, which Plaintiff and the Class relied upon to their detriment. The representations made in the Company's Prospectus were materially false and misleading because at the time of the Offering, AIG was already suffering from several adverse factors that were not revealed and/or adequately addressed in the document. These factors include, but are not limited to, the fact that, contrary to representations in the Prospectus: (i) AIG did not have a relatively small exposure to loss associated with credit swaps sold by certain variable interest entities; (ii) AIG's exposure to loss associated with credit protection assumed by AIG Financial Products Corp. and AIG Trading Group Inc., including their respective subsidiaries ("AIGFP") on portfolios of loans or debt securities was not remote, even in severe recessionary market scenarios; and (iii) AIG's financial statements and financial information, as contained in and incorporated by reference into the Prospectus, were not presented in conformity with generally accepted accounting principles ("GAAP").
If you are a member of this class, you can view a copy of the complaint as filed. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you wish to serve as lead plaintiff, you must move the Court no later than December 9, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, T.J. McKenna at (212) 983-1300 or via e-mail at tjmckenna@gaineyandmckenna.com.