Cotchett, Pitre, Simon & McCarthy Announce Class Action Against American International Group, Inc.

BURLINGAME, Calif.--(BUSINESS WIRE)--May 16, 2005--The following was released today by Cotchett, Pitre, Simon & McCarthy:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on behalf of all persons who purchased securities of American International Group, Inc. ("AIG") between October 1, 1999 and March 30, 2005 (the "Class Period").

Plaintiff's Complaint alleges causes of action under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. The named defendants are AIG, C.V. Starr & Co., Inc., Starr International Inc., General Reinsurance Corporation, Maurice Greenberg, Howard Smith, Christian Milton, and L. Michael Murphy.

Plaintiff alleges that defendants made false statements and concealed material information concerning AIG's financial condition and accounting practices relating to, among other items, non-traditional insurance products, assumed reinsurance transactions, and use of affiliated entities for executive compensation. Plaintiff alleges that AIG structured transactions for the primary purpose of accomplishing a desired accounting result, including a sham reinsurance deal set up with defendant General Reinsurance Corporation to bolster reserves, transactions with supposedly independent companies that were in fact controlled by AIG, mis-classified losses, and questionable estimates on deferred acquisition costs.

Plaintiff alleges that it and other class members suffered damages from this specific conduct, first revealed to the public in 2005. Plaintiff alleges that, between February 14, 2005, when AIG first disclosed that it had received subpoenas from the SEC and the New York Attorney General, and April 1, 2005, after AIG issued a press release relating to this conduct, AIG's share value fell approximately 30%. AIG has since announced a need to restate its financial statements for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, June 30, and September 30, 2004 and 2003, and the quarter ended December 31, 2003, and that its prior financial statements for those periods should no longer be relied upon. Plaintiff's action seeks to pursue claims related to the alleged misconduct that was not revealed until 2005 and manifested by the loss of share value in 2005. Conversely, Plaintiff's action is not based upon and does not seek to represent a class to pursue claims related to defendants' participation in so-called "bid rigging" and/or "PNC" transactions, which were the subject of other regulatory investigations and civil actions originally filed in 2004, and which allegedly led to independent damages manifested by a drop in AIG's share value in 2004.

Accordingly, please take notice that if you are a member of the class described above, you may, not later than sixty days from May 16, 2005, move the Court to serve as lead plaintiff of the class. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, you may contact Cotchett, Pitre, Simon & McCarthy, 840 Malcolm Road, Suite 200, Burlingame, California 94010 or visit the website at www.cpsmlaw.com.