AIG ERISA Litigation

In Re AIG ERISA Litigation was filed in the United States District Court for the Southern District of New York on behalf of Plaintiffs and a class (the "Class") of all persons who were participants in or beneficiaries of the AIG Incentive Savings Plan, the American General Employees’ Thrift and Incentive Plan, the American General Agents’ and Managers’ Thrift Plan, and the CommoLoCo Thrift Plan ("the Plans").

The Consolidated Complaint alleged that during the Class Period, the Defendants breached their fiduciary duties to Plaintiffs and the Class members by:

  • failing to prudently and loyally manage the Plans and the Plans’ assets;
  • failing to provide participants with complete and accurate information regarding AIG stock sufficient to advise participants of the true risks of investing their retirement savings;
  • failing to properly monitor the performance of their fiduciary appointees, and remove and replace those whose performance was inadequate;
  • breaching the duty to avoid conflicts of interest;
  • violating the co-fiduciary liability; and
  • knowingly participating in a breach of duty.

On October 7, 2008, the Honorable Kevin Thomas Duffy, acting on behalf of the Honorable John E. Sprizzo, signed the order granting final approval of the Settlement between the Plaintiffs and the Defendants. The Settlement Agreement provides that the Defendants agree to pay $24,200,000 in cash to settle the claims asserted in the Consolidated Complaint. After payment of and establishment of reserves for any taxes and Court-approved costs, attorneys’ fees, and expenses, including any Court-approved case contribution awards to be paid to the Named Plaintiffs, the Settlement proceeds will be paid to the Plans and, after payment of implementation expenses, the remaining amount will be allocated to the Plans’ accounts of members of the Settlement Class according to a Plan of Allocation to be approved by the Court. If necessary, a Plan account will be created for those members of the Settlement Class who no longer have Plan accounts. The Class consists of:

All persons: (a) who were participants in or beneficiaries of the: (i) AIG Incentive Savings Plan at any time from September 30, 2000 through May 31, 2005; (ii) American General Employees’ Thrift and Incentive Savings Plan at any time from August 29, 2001 through January 1, 2003; (iii) American General Agents’ and Managers’ Thrift Plan at any time from August 29, 2001 through May 31, 2005; or the (iv) CommoLoCo Thrift Plan at any time from August 29, 2001 through May 31, 2005; and (b) whose Plan accounts included direct or indirect investments in AIG stock and/or the AIG Stock Fund(s) (collectively, the “Settlement Class” or “Class”). The Settlement Class shall not include any of the Individual Defendants (defined to include all Defendants other than AIG), or any of the Individual Defendants’ Immediate Family, beneficiaries, alternate payees, Representatives or Successors-In-Interest, except for Immediate Family, beneficiaries, alternate payees, Representatives or Successors-In-Interest, who themselves were participants in the Plans, who shall be considered members of the Settlement Class with respect to their own Plan accounts.

Any payments to the Plans are subject to certain conditions and limitations set forth in the Settlement Agreement.


Case Documents