American Insurance Group Inc. ERISA Litigation II
United States District Court for the Southern District of New York
Case No. 08-05722
Final approval of the Class Action Settlement Agreement was ordered on September 18, 2015.
Keller Rohrback and Co-Counsel filed the Consolidated Second Amended Complaint in In re American International Group, Inc. ERISA Litigation II on behalf of Plaintiffs and a proposed Class of similarly situated persons.
Plaintiffs allege that during the Class Period Defendants breached their fiduciary duties to Plaintiffs and the proposed Class by:
- failing to prudently and loyally manage the Plans by continuing to allow the investment of AIG stock in the Plans when AIG stock was no longer a prudent investment for participants’ retirement savings,
- failing to properly monitor the performance of their fiduciary appointees and remove and replace those whose performance was inadequate,
- breaching their fiduciary duty of loyalty by acting in furtherance of their personal interests as employees or executives of AIG at the expense of the Plans’ and the participants’ best interests, and
- enabling co-fiduciary breaches and failing to prevent their co-fiduciaries from breaching their duties of prudent and loyal management of the Plans’ assets and proper monitoring of the Plans’ assets, including the AIG Stock Fund.
Not all claims are against every Defendant.
On March 19, 2009, the Honorable Laura Taylor Swain consolidated the various pending ERISA cases and appointed Keller Rohrback L.L.P. as Interim Co-Lead Counsel in the Consolidated ERISA Action.
On March 31, 2011, the Court upheld the majority of Plaintiffs’ claims in the Consolidated Amended Complaint. Following certain discovery, Plaintiffs filed their Consolidated Second Amended Complaint. On June 26, 2014, the Court denied Defendants’ motions to dismiss in light of the Supreme Court’s rejection of the presumption of prudence—relied upon by Defendants in their motions—in Fifth Third Bancorp v. Dudenhoeffer, No. 12-751, slip op., 573 U.S. ____ (June 25, 2014).
On June 5, 2015, the Honorable Laura Taylor Swain granted preliminary approval of the Class Action Settlement Agreement.
On September 18, 2015, the Honorable Laura Taylor Swain granted final approval of the Class Action Settlement Agreement.
Under the terms of the settlement, Defendants agreed to pay $40 million to resolve claims that they breached their fiduciary duties by improperly managing the Plan.
The Settlement Class is defined as:
All persons: (a) who were participants in or beneficiaries of any of the Plans at any time from August 7, 2007 through May 1, 2009, and (b) whose Plan accounts included direct or indirect investments in AIG stock and/or the AIG Stock Fund.