AIG May Face SEC Suit on Statements to Investors

From Reuters

American International Group Inc., which faces a possible lawsuit by securities regulators over charges of helping a major banking client hide bad loans, said Monday that regulators might also sue the insurance giant for what they called “false and misleading” statements made to investors.

The threat of new Securities and Exchange Commission charges concerns three news releases issued by New York-based AIG. It widens the scope of disciplinary actions that may be taken against the world’s largest insurer by market value.

AIG already faces possible SEC civil charges and a Justice Department criminal investigation into whether one of its units helped Pittsburgh-based PNC Financial Services Group Inc. move $762 million of bad loans off its books, inflating profit by $155 million.


AIG issued the news releases in question Jan. 30, 2002, and Sept. 21 and Sept. 29 this year. The 2002 release concerned the PNC transactions, the Sept. 21 release said the SEC might file civil charges related to the transactions, and the Sept. 29 release announced a Justice Department probe.

The insurer said any contention that it made false or misleading statements lacked merit.

AIG shares Monday fell 23 cents to $68.49 on the New York Stock Exchange.