According to a press release dated May 16, 2005, the Complaint alleges causes of action under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. The named defendants are AIG, C.V. Starr & Co., Inc., Starr International Inc., General Reinsurance Corporation and certain Individual Defendants.

The complaint alleges that defendants made false statements and concealed material information concerning AIG's financial condition and accounting practices relating to, among other items, non-traditional insurance products, assumed reinsurance transactions, and use of affiliated entities for executive compensation. Plaintiff alleges that AIG structured transactions for the primary purpose of accomplishing a desired accounting result, including a sham reinsurance deal set up with defendant General Reinsurance Corporation to bolster reserves, transactions with supposedly independent companies that were in fact controlled by AIG, mis-classified losses, and questionable estimates on deferred acquisition costs.

The complaint further alleges that it and other class members suffered damages from this specific conduct, first revealed to the public in 2005. Plaintiff alleges that, between February 14, 2005, when AIG first disclosed that it had received subpoenas from the SEC and the New York Attorney General, and April 1, 2005, after AIG issued a press release relating to this conduct, AIG's share value fell approximately 30%. AIG has since announced a need to restate its financial statements for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, June 30, and September 30, 2004 and 2003, and the quarter ended December 31, 2003, and that its prior financial statements for those periods should no longer be relied upon. Plaintiff's action seeks to pursue claims related to the alleged misconduct that was not revealed until 2005 and manifested by the loss of share value in 2005. Conversely, Plaintiff's action is not based upon and does not seek to represent a class to pursue claims related to defendants' participation in so-called "bid rigging" and/or "PNC" transactions, which were the subject of other regulatory investigations and civil actions originally filed in 2004, and which allegedly led to independent damages manifested by a drop in AIG's share value in 2004.

If you bought American International Group, Inc. (AIG) securities between October 01, 1999 and March 30, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.