American International Group (AIG) employees have filed a lawsuit against the company in an attempt to recoup the money they lost in the company's pension plan.
The lawsuit seeks class action status and has been filed against for alleged violations of the Employee Retirement Income Security Act related to a loss of value of AIG stock caused by its alleged involvement in bid-rigging activities.
According to the lawsuit, participants in AIG's pension plan suffered substantial losses due to a 13.6% drop in the company's stock price in the two days following the New York attorney general's announcement of AIG's alleged involvement in bid-rigging.
The lawsuit alleges that the defendants, including AIG Maurice Greenberg, breached fiduciary duties because they knew or should have known that the company's securities were no longer a prudent investment.
The defendants failed to eliminate or reduce the amount of company stock in the plan and failed to give employees complete and accurate information about the company's bid-rigging activities, according to the complaint.
The New York-based law firm of Wolf Popper L.L.P. filed the lawsuit on behalf of present and former employees of AIG participating in the company's 401(k) pension plan from 1 November 1998 to the present.
