AIG Gets Subprime Class Action Pared Down

Law360, New York (April 26, 2013, 6:37 PM EDT) -- A New York federal judge on Friday threw out part of a putative class action alleging American International Group Inc. misled investors about its exposure to subprime mortgages ahead of the financial crisis.

U.S. District Judge Laura Taylor Swain said investors had failed to show that AIG knew statements it made to the markets about its financial health contained misrepresentations.

The decision tosses claims institutional investors brought against the insurance giant under Section 11 of the Securities Act of 1933, though claims brought under the Securities...
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