AIG Hit With ERISA Suit Over Plummeting Share Price

Law360, New York (September 17, 2008, 12:00 AM EDT) -- Hours before the U.S. government announced a bailout of the beleaguered American Insurance Group Inc., a former employee launched a class action in Manhattan federal court claiming the insurer's pension plan invested in its own poorly performing common stock, causing millions of dollars in losses.

The employee, Wendy Mimms, filed a complaint in the U.S. District Court for the Southern District of New York on Tuesday, the same day the Federal Reserve announced it would loan the insurer $85 billion to keep it afloat.

The 48-page...
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