Friday, October 15, 2010

JUDGE REFUSES TO DISMISS AIG CLASS-ACTION SUIT

A federal judge refused to dismiss a class-action lawsuit accusing American International Group of
misleading investors about its exposure to subprime mortgages, which led to a liquidity crisis
and $182.3 billion of fedral bailouts. US District Judge Laura Taylor Swain said the plaintiffs
alleged facts "giving rise to a strong inference of fraudulent intent" in how AIG communicated
publicly about the risks in its portfolio of credit default swaps. AIG did not immediately return a
call seeking a comment.

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