Class Claims AIG Took It for $5 Billion (stock manipulation)
Class Claims AIG Took It for $5 Billion
WASHINGTON (CN) - In a federal class action, investors say AIG Group rolled them for more than $5 billion at the height of the financial crisis by selling "equity units" whose value AIG then deflated by 95 percent, to reinflate the price of its own stock.
Lead plaintiff Kathryn Lynn Campbell sued American International Group, its CEO R.H. Benmosche and the other 13 members of its Board of Directors.
Campbell claims the "equity units" were designed to fail so AIG's regular stock could be inflated.
The complaint states: "In January 1987, defendant established its infamous AIG Financial Products unit. Permeated by 'recklessness and greed,' the Financial Products Division manufactured 'immensely profitable' and 'deceptive' financial products that eventually poisoned the entire global financial system resulting in a taxpayer funded 'massive bailout' of AIG in 2008 to the tune of 182 billion dollars! 'AIG's Financial Products Unit finally died the week of August 6, 2011. It was 24.'"
...
The complaint continues: "Aware of the impending financial crises its reckless and deceptive activities are about to unleash, AIG embarked upon a 20 billion dollars capital raising effort in May 2008. Among the devices it concocted to raise new capital was the issuance of what it called AIG Equity Units.
http://www.courthousenews.com/2012/01/30/43443.htm
= new reply since forum marked as read
