Securities law firm alleges “misstatements and omissions”.
Securities law firm Klayman & Toskes has filed a class action against a number of leading investment banks, alleging they failed to note misstatements and omissions in an AIG prospectus for a debt issue/
According to Dow Jones, the complaint alleges that the prospectus failed to disclose that AIG was laboring under several adverse factors including:
-AIG did not have a relatively small exposure to loss associated with credit swaps sold by certain variable interest entities
- AIG's exposure to loss associated with credit protection assumed by AIG Financial Products Corp. and AIG Trading Group Inc., including their respective subsidiaries on portfolios of loans or debt securities was not remote, even in severe recessionary market scenarios
- AIG's financial statements and financial information, as contained in and incorporated by reference into the Prospectus, were not presented in conformity with Generally Accepted Accounting Principles.
The underwriters named include: Banc of America Securities; Bear Stearns n/k/a JPMorgan Chase; Citigroup, Merrill Lynch; Morgan Stanley; Wachovia; and Wells Fargo.
