AIG has reportedly settled a shareholder class action lawsuit filed in Federal Court. Even though the Federal Government closed its alleged investigations into the subject, without filing any criminal or civil regulatory enforcement action, the AIG shareholders’ lawsuit involved allegations that AIG “had led investors to buy stock and debt they otherwise would not have bought, resulting in billions of dollars in losses.” The alleged failures of AIG were alleged failures “to disclose the risks [AIG] took on through its portfolio of credit default swaps and a securities lending program.” Reuters copyrighted report, “A.I.G. to Pay Nearly $1Billion to Settle Class-Action Suit Brought by Shareholders,” p. 16, Col. 1 (New York Times Nat’l ed., Sunday, March 22, 2015).
AIG’s monetary payment of indemnity in the settlement is a reported $970.5 Million. Id.
AIG will pay the plaintiffs’ attorneys $120.46 Million. See id.
Whether these numbers are “hard” or “soft,” including whether the settlement payments for indemnity in particular represent actual amounts to be paid to the plaintiffs in this settlement, are questions worth exploring further.
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