AIG's Lewis Retires After Saying `We Were Wrong' About Subprime
Robert Lewis, chief risk officer of AIG
Andrew Harrer/Bloomberg
Robert Lewis, senior vice president and chief risk officer of American International Group Inc.
Robert Lewis, senior vice president and chief risk officer of American International Group Inc. Photographer: Andrew Harrer/Bloomberg
Oct. 6 (Bloomberg) -- Bloomberg's Deirdre Bolton reports on major newsmakers in today's Movers & Shakers. (Source: Bloomberg)
PricewaterhouseCoopers LLP’s two- year-old, $97.5 million settlement with holders of American International Group Inc. securities is set to go before a federal judge next month.
The accounting firm said in October 2008 it would compensate the plaintiffs for their losses to avoid “enormous litigation costs” over claims it helped AIG mislead investors. The settlement won preliminary court approval and is scheduled for a hearing in Manhattan on Nov. 30, law firm Labaton Sucharow said today in a statement.
An investigation by then-New York Attorney General Eliot Spitzer and U.S. regulators triggered a $3.9 billion earnings restatement by AIG in May 2005 and led to the ouster of Maurice “Hank” Greenberg, the New York-based insurer’s chief executive officer for almost 40 years.
Plaintiffs in the proposed class-action suit, who held shares of companies that AIG bought with its stock, include the Ohio Public Employees Retirement System, according to court documents.
Steven Silber, a PricewaterhouseCoopers spokesman, said he couldn’t immediately comment. The firm said in 2008 that its work for AIG was “in accordance with professional standards.”
The case is In re American International Group Inc. Securities Litigation, 04-cv-08141, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
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