AIG Faces Investor Suit Over CDS, Subprime Losses

Law360, New York (January 20, 2009, 12:00 AM EST) -- American International Group Inc. is facing another lawsuit from investors in the wake of its bailout by the federal government in the fall, this time from investors alleging that they lost significant amounts of money on notes they held as AIG's credit problems came to light.

In a proposed class action filed Thursday in the U.S. District Court for the Southern District of New York, Epstein Real Estate Advisory alleged that AIG, its management and directors did not disclose, when marketing medium-term notes, its exposure to...
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