Barrack, Rodos & Bacine Announces Record Settlement of AIG 2008 Securities Class Action
8/4/2014 - Barrack, Rodos & Bacine, a lead counsel in the American International Group, Inc. 2008 Securities Litigation class action lawsuit pending in the U.S. District Court for the Southern District of New York, announces that settlements totaling $970.5 million have been reached in the case. The recovery was achieved by BR&B client, the State of Michigan Retirement Systems, as the Court-appointed lead plaintiff, after six years of intense litigation, which included the completion of all fact witness discovery and full briefing, an evidentiary hearing, and argument on lead plaintiff’s motion for class certification. The settlements were reached through negotiations spanning over two years, with the assistance of mediator Layn Phillips, a former U.S. District Court Judge.
If approved by the Court, the total settlement amount will be among the largest recoveries ever achieved in a securities fraud class action stemming from the 2008 financial crisis. It would release claims of the members of the putative class, which consists of all persons and funds that purchased publicly issued common stock, corporate units, bonds, subordinated debentures and notes of AIG from March 16, 2006 through September 16, 2008, and were injured thereby.
Leonard Barrack, the senior partner of Barrack Rodos & Bacine, stated: “We brought this case to protect the interests of investors. We are very pleased that we were able to achieve this recovery, and look forward to presenting the settlements to the Court for its consideration.”
Jeffrey Golan, who served as the firm’s primary counsel in the case, added: “We are honored to have served as a lead counsel for this case and to have achieved this recovery for the class. We also congratulate Michigan’s State Treasurer, Attorney General and the State of Michigan Retirement Systems, who stepped up to the plate to oversee the prosecution of this important case, and encourage all members of the class to retain their records showing their purchases, sales and holdings of AIG stock and other securities within the class period, pending the Court’s consideration of the settlements.”
According to BR&B partner, Robert Hoffman, “the proposed securities class action settlement is one of the largest ever achieved in the absence of a criminal indictment or an SEC enforcement action, and demonstrates the importance of private securities litigation as a means of recovery for injured investors.”
For additional information about this settlement, please contact Barrack, Rodos & Bacine at (215) 963-0600.