NEW YORK (Legal Newsline) - American International Group has agreed to a $970.5 million settlement in a class action lawsuit alleging the company violated federal securities laws.
The plaintiffs and AIG entered into a stipulation and agreement of settlement on Sept. 12, and it was approved on Oct. 7, according to a settlement document filed in the U.S. District Court for the Southern District of New York.
"Defendants have denied...that defendants acted fraudulently or wrongfully in any way," the settlement document states.
The defendants maintained that they have meritorious defenses to all claims alleged in the action.
All persons or entities who purchased AIG securities on a U.S. public exchange during the period from March 16, 2006, through Sept. 16, 2008, or who purchased or acquired AIG securities in or traceable to a public offering during the class period could be eligible for a claim in the settlement.
All proofs of claim must be submitted no later than May 5 in order to be eligible to receive a payment under the settlement.
Any fees and expenses awarded will be paid from the settlement fund to lead counsel promptly upon entry of the order awarding such attorneys fees and expenses, according to the settlement document.
The State of Michigan Retirement Systems, as lead plaintiff in the consolidation of eight class action lawsuits, claimed it lost between $110 million and $142 million because of AIG, according to the 2008 complaint.
If approved by the court, the total settlement amount will be among the largest recoveries ever achieved in a securities fraud class action stemming from the 2008 financial crisis.
"This settlement represents an outstanding result for the State of Michigan and other investors," E. Powell Miller of The Miller Law Firm said in a press release.
The plaintiffs and class members are represented by Leonard Barrack, Jeffrey W. Golan, Robert A. Hoffman, Lisa M. Port and Julie B. Palley of Barrack, Rodos & Bacine in Philadelphia; A. Arnold Gershon and Michael A. Toomey of Barrack, Rodos & Bacine in New York; and Miller, Marc L. Newman and Jaysen E. Blake of The Miller Law Firm PC in Rochester, Mich.
A fairness hearing will be held on March 20 before District Judge Laura Taylor Swain.
U.S. District Court for the Southern District of New York case number: 1:08-cv-04772
From Legal Newsline: Kyla Asbury can be reached at classactions@legalnewsline.com.