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On behalf of our clients, we demand accountability from Wall Street. We litigated against the world’s largest insurance company to fight for investors and we won.
Labaton Sucharow earned a huge win on behalf of investors in one of the most complex and challenging litigations in history. The Firm defeated 22 motions to dismiss and took or defended nearly 100 depositions in an eight-year litigation over AIG’s involvement in (1) a market division scheme that included payment of allegedly improper contingent commissions and illegal insurance bid rigging and (2) an accounting fraud that wiped out $2.26 billion in shareholder equity when the company restated in 2005.
The Firm secured more than $1 billion in total settlements, including a landmark $725 million settlement against the company. Also recovered were a $97.5 million settlement with AIG’s auditors, a $115 million settlement with former AIG officers, including former CEO Hank Greenberg, and related defendants, and a $72 million settlement with General Reinsurance Corp., which was alleged to have been involved in one of the accounting frauds with AIG.
In total, the four settlements provided investors with a recovery of more than $1 billion. This is the 11th largest recovery ever in a securities class action and the second largest in any securities class action since the financial crisis began in September 2008.