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Ohio Attorney General Jim Petro announced last month that three of Ohio’s public retirement systems have been appointed lead plaintiff in a securities class action lawsuit against American International Group Inc. that alleges ÌìÃÀÍøÕ¾´«Ã½´«Ã½ engaged in “bid-rigging” and other fraudulent behavior. Preliminary loss estimates to the Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio and Ohio Police & Fire Pension Fund could be as much as $70 to $75 million, while losses to the entire class could be billions of dollars.

According to Petro, the allegations against ÌìÃÀÍøÕ¾´«Ã½´«Ã½ include misleading investors by being part of a bid-rigging scheme and by the true nature of its contingent-commission arrangements with Marsh & McLennan and other insurance brokers. Two ÌìÃÀÍøÕ¾´«Ã½´«Ã½ executives have pleaded guilty, the documents produced to regulators and the investigations concerning bid-rigging and its sale of “income-smoothing” products and creation of off-balance sheet partnerships lead to the appearance that ÌìÃÀÍøÕ¾´«Ã½´«Ã½ was aware of its wrongful conduct. The class action is currently pending in the U.S. District Court for the Southern District of New York.

Topics Lawsuits Ohio ÌìÃÀÍøÕ¾´«Ã½´«Ã½