ÌìÃÀÍøÕ¾´«Ã½´«Ã½

A former employee of American International Group has filed a lawsuit claiming that PricewaterhouseCoopers was negligent in its audits of ÌìÃÀÍøÕ¾´«Ã½´«Ã½ and that the board of the bailed-out insurer failed to pursue a claim against the accountants.

The suit, filed in federal court in Manhattan on Tuesday by Wanda Mimms, was brought as a derivative action on behalf of the ÌìÃÀÍøÕ¾´«Ã½´«Ã½ Incentive Savings Plan. PwC and ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s board are named as defendants.

Mimms contends the ÌìÃÀÍøÕ¾´«Ã½´«Ã½ incentive plan held shares in the company from late February 2008 through late January 2009. PwC, as ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s auditor, should have known the share price was inflated by inaccurate financial statements, Mimms argues.

Mimms demanded in July 2010 that ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s investment committee pursue action against PwC for losses in the plan. Her demand was referred to ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s board, which rejected it in September, according to the lawsuit.

The lawsuit demands PwC make the incentive plan whole for its losses, as well as other relief.

A PwC spokesman said the company has not been served and cannot comment at this time. An ÌìÃÀÍøÕ¾´«Ã½´«Ã½ spokesman declined to comment.

The case is Mimms v. PricewaterhouseCoopers LLP et al, U.S. District Court, Southern District of New York, No 11-00030.

(Reporting by Ben Berkowitz, additional reporting by Dena Aubin; Editing by Phil Berlowitz)

Topics Lawsuits ÌìÃÀÍøÕ¾´«Ã½´«Ã½