Michigan wants lead in class action case against AIG

By John O'Brien | Jul 24, 2008


LANSING, Mich. (Legal Newsline) - Michigan Attorney General Mike Cox says he is trying to protect more than 600,000 state pensions by becoming the lead plaintiff in a class action case against American International Group.

Cox wants a federal judge to appoint the State of Michigan Retirement Systems in the suit, which alleges AIG misled investors value of its Credit Default Swaps tied to the subprime mortgage market.

The original complaint was filed in May by the Jacksonville Police and Fire Pension Fund. The Ontario Teachers Pension Plan Board and the Oakland County, Mich., also moving to become lead plaintiff.

New York firm Bernstein Liebhard & Lifshitz submitted the State of Michigan's request Monday. Barrack, Rodos & Bacine of New York and The Miller Law Firm of Rochester, Mich., also appeared on the document.

The complaint claims AIG broke federal securities laws by claiming their CDSs would be safe during the nation's mortgage crisis.

The SMRS has combined assets of approximately $60 billion. Cox is attempting the same move in a similar case against Bear Sterns.

From Legal Newsline: Reach John O'Brien by e-mail at john@legalnewsline.com.

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