AIG Fails In 2nd Bid To Toss Shareholder Action

Law360, New York (February 8, 2011, 7:36 PM EST) -- American International Group Inc.'s second stab at fending off a consolidated class action failed Tuesday when a judge refused to dismiss the suit, which accuses the company of misleading investors about its exposure to mortgage-backed securities and credit default swaps.

Judge Laura Taylor Swain denied a motion brought by AIG's underwriter and co-defendant PricewaterhouseCoopers LLC asking the court to reconsider a Sept. 27 ruling that refused to dismiss the case in the U.S. District Court for the Southern District of New York.

Judge Swain said AIG's...
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