AIG Beats Derivative Suit In 2nd Circ.

Law360, New York (March 17, 2011, 6:20 PM EDT) -- The Second Circuit on Thursday affirmed a New York judge's rejection of a Louisiana municipal retirement fund's shareholder derivative suit against American International Group Inc. over alleged waste and breach of fiduciary duty relating to mortgage liabilities.

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled that the Louisiana Municipal Police Employees Retirement System had failed to make a required demand on AIG’s board of directors.

Under applicable Delaware law, directors are entitled to a presumption that they were faithful to...
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