Michigan Retirement Plan Is Lead Plaintiff in Securities Suit Against AIG

Michigan Treasurer Robert Kleine and Attorney General Mike Cox say Michigan has been named lead plaintiff in a class action lawsuit against American International Group Inc. (AIG).

The State of Michigan Retirement Systems invested in AIG on behalf of more than 600,000 state employees, public school employees, state police, Michigan judges and their beneficiaries.

AIG was heavily invested in credit default swaps, insurance-like contracts tied to sub-prime mortgage-backed securities and other risky debt. The lawsuit accuses AIG of illegally misleading investors about the scope and risks of those investments.

Kleine and Cox say Michigan will manage litigation on behalf of a class of AIG stock and bond purchasers, negotiate potential settlement terms and maximize recovery for the class.

Latest Comments

• March 24, 2009 at 7:25 am

  Ratemaker says:

  Credit Default Swaps being referred to as "insurance-like contracts," not "insurance policies." AIG not being referred to as "insurance giant AIG." Someone at the AP actually ... read more
• March 23, 2009 at 1:13 am

  Joe the plunged says:

  So the government pensions invested in AIG are suffering enormous losses and State AGs are going after them. I guess my losing half of my retirement 401K account is just tough... read more