AIG shareholders filed a complaint against former AIG directors accusing them of ignoring warnings of catastrophic losses in the company’s financial services unit due to risky credit default swaps. The plaintiffs claim the board overstated the AIG’s financial health and authorized stock buybacks at inflated prices. Plaintiffs include the Louisiana Municipal Police Employees’ Retirement System and former AIG executive Robert Willumstad. The sixteen former directors are asking the federal judge to dismiss the case. Their lawyers described the plaintiffs’ argument as “absurd on its face” and “schizophrenic.” Reuters reported that the shareholders are seeking restitution and “extraordinary” equitable relief as appropriate.
Former AIG Directors: Plaintiffs’ Claims ‘Absurd’
Sixteen former AIG directors deny “schizophrenic” charges that their decisions deliberately led to the company’s demise.
August 27, 2009