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AIG Securities Litigation - Gen Re Settlement

IMPORTANT:  Lead Counsel Labaton Sucharow LLP is pleased to report that on September 30, 2014, the Court issued orders approving the initial distributions of the settlement proceeds from the four settlements in the AIG Securities Litigation – the “PwC,” “Company,” “Starr,” and “Gen Re” Settlements.  On November 18, 2014, pursuant to the Court’s Orders, 90% of the PwC, Company, Starr, and Gen Re Net Settlement Funds were distributed.  The remaining funds will be distributed at a future date to eligible claimants who cash their initial distribution payments.  If you receive a check from this distribution, please cash it promptly as it will become stale on the date listed on the check.

The following is a summary of information presented in more detail in the Notice of Proposed Settlement, Motion for Attorneys’ Fees and Expenses Award and Fairness Hearing (the "Notice"), which Class Members should have received in the mail, and which you can access by clicking on the “Notice” link on the left. Since this is just a summary, you should review the full Notice for additional details.

If You Purchased or Otherwise Acquired Securities Issued by American International Group, Inc. During the Period From October 28, 1999 Through April 1, 2005, Inclusive, (the “Class Period”) and Were Damaged Thereby, You May Be Entitled to Share in a $72 Million Settlement With General Reinsurance Corporation.

If you would like information about:

American International Group Securities Litigation-PwC Settlement please click here.
American International Group Securities Litigation-Company Settlement please click here.
American International Group Securities Litigation-Starr Defendants Settlement please click here.

Securities Brokers and other Nominees: Please see instructions at the end of the Notice. 

 Important Dates and Deadlines

File a Proof of Claim  Postmarked no later than September 12, 2013 
File an Exclusion  Postmarked no later than August 20, 2013 
File an Objection  Postmarked no later than August 20, 2013 
File a Release Form  Postmarked no later than September 12, 2013 
Fairness Hearing 

September 10, 2013 at 3:00 p.m.
United States District Court
Southern District of New York

 

What was this case about?

The allegations against the Gen Re Defendants were limited to a single transaction.  Lead Plaintiff alleged that (i) the Gen Re Defendants knowingly, or with severe recklessness, designed and executed the Gen Re Transaction to inflate AIG’s financial results; and (ii) the Gen Re Transaction allowed defendants to mislead investors during the Class Period.  Lead Plaintiff also alleged that disclosures in February, March and April 2005 of a massive accounting fraud at AIG, including the Gen Re Transaction, resulted in AIG’s $3.9 billion restatement or adjustment of earnings in May 2005.  At the end of the Class Period, the price of AIG’s stock dropped significantly when these frauds were disclosed, resulting in alleged damages to the Settlement Class. 

Gen Re denied all liability and the Settlement is not and may not be construed or deemed to be evidence of, or an admission or a concession on the part of Gen Re, of any fault or liability whatsoever or of any infirmity in any defenses it has asserted or intended to assert, or of the merits of Lead Plaintiff’s claims.  Gen Re, while affirmatively denying liability, considered it desirable and in its best interest that the claims against Gen Re in the Action be dismissed under the terms of the proposed Settlement in order to avoid further expense, uncertainty and distraction, and protracted litigation.

 

Terms of the Settlement

In exchange for the Settlement and dismissal of the Released Claims, Gen Re agreed to fund a $72 million (before interest) account that was divided, after deduction of Court-awarded attorneys’ fees and expenses, Lead Plaintiff expenses, Notice and Administrative Expenses, and any applicable taxes, (“Distribution Amount”) among all Class Members who timely submitted valid Proof of Claim forms that showed a Recognized Loss.  Your share of the Distribution Amount depended on several things, including: (1) the amount of Recognized Losses of other Class Members who filed valid Proofs of Claim; (2) how many AIG Securities you bought; (3) how much you paid for them; (4) the type of security bought; (5) when you bought them; (6) whether or when you sold them (and, if so, for how much you sold them).

Your Recognized Loss was calculated according to the formula shown in the Plan of Allocation.  It is unlikely that you got a payment for your entire Recognized Loss, given the number of potential Class Members with Recognized Losses.  The payment you got was a portion of the Distribution Amount equal to your Recognized Loss divided by the total of all Class Members’ Recognized Losses and multiplied by the total Distribution Amount. (See the Plan of Allocation in the Notice for more information.)

 

Further Information

Further information regarding the Action, the Notice and your Proof of Claim or Release form may be obtained by contacting the Administrator or reading through the Notice, Proof of Claim form and Release Form links on the left.

Disclaimer

IMPORTANT: THIS SITE IS NOT OPERATED BY AIG.  THIS SETTLEMENT IS SUPERVISED BY LEAD PLAINTIFF’S COUNSEL.  THE ADMINISTRATOR HANDLES ALL ASPECTS OF CLAIM PROCESSING. THIS IS THE AUTHORIZED WEB SITE FOR THIS SETTTLEMENT; INFORMATION CAN ALSO BE FOUND ON LEAD PLAINTIFF’S COUNSEL’S WEBSITE WWW.LABATON.COM. PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.

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