Michigan Treasurer Robert Kleine and Attorney General Mike Cox say Michigan has been named lead plaintiff in a class action lawsuit against American International Group Inc. (AIG).
The State of Michigan Retirement Systems invested in AIG on behalf of more than 600,000 state employees, public school employees, state police, Michigan judges and their beneficiaries.
AIG was heavily invested in credit default swaps, insurance-like contracts tied to sub-prime mortgage-backed securities and other risky debt. The lawsuit accuses AIG of illegally misleading investors about the scope and risks of those investments.
Kleine and Cox say Michigan will manage litigation on behalf of a class of AIG stock and bond purchasers, negotiate potential settlement terms and maximize recovery for the class.
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