Another Defendant Dropped From AIG Fraud Case

Law360, New York (January 12, 2010, 3:33 PM EST) -- Plaintiffs in the massive securities fraud class action against American International Group Inc. and its top brass agreed on Monday to drop Richmond Insurance Co. Ltd. as a defendant, citing the benefits of streamlining the case for trial.

The suit, filed in the U.S. District Court for the Southern District of New York, alleged that Richmond and AIG concealed the fact that AIG secretly controlled Richmond, which allowed AIG to improperly remove hundreds of millions of dollars in liabilities from its books.

But when Richmond's counsel...
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