European Investors Launch AIG Fraud Suit Over CDO Bets

Law360, New York (June 12, 2012, 6:28 PM EDT) -- A slew of European institutional investors on Monday unleashed a new securities suit in New York against American International Group Inc. for allegedly covering up its disastrous bets in the subprime mortgage market.

In a complaint filed in New York federal court, the British Coal Staff Superannuation Scheme and seven other European institutional investors claim AIG's profit-driven, bonus-obsessed culture prevented proper risk analysis of lucrative credit-default swaps contracts tied to the subprime mortgage market. AIG executives also failed to warn its common stock investors after realizing...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.