Notice to All Investors of AIG Junior Subordinated Debentures, Series A-5 From the Securities Law Firm of Klayman & Toskes
October 22 2008 - 10:00AM
PR Newswire (US)
NEW YORK, Oct. 22 /PRNewswire/ -- The Securities Law Firm of
Klayman & Toskes, P.A., http://www.nasd-law.com/, announced
today that a class action lawsuit, Case No. 08-cv-08659, has been
filed against several underwriters in connection with the issuance
of American International Group (NYSE:AIG) Junior Subordinated
Debentures, Series A-5 (NYSE:AVF) ("AIG Junior Debentures A-5").
These underwriters include: -- Banc of America Securities (BAC) --
Bear Stearns n/k/a JPMorgan Chase (JPM) -- Citigroup Global Markets
(C) -- Merrill Lynch (MER) -- Morgan Stanley (MS) -- RBC Capital
Markets (RBC) -- UBS Securities (UBS) -- Wachovia Capital Markets
(WB) -- Wells Fargo Securities (WFC) Potential class members who
purchased AIG Junior Debentures A-5 from these underwriters should
consider whether they should participate in the class action or
file an individual securities arbitration claim. According to the
Complaint, the Prospectus issued by AIG for its Junior Debentures
A-5 contained misstatements and omissions. It is alleged that the
Prospectus failed to disclose that AIG was laboring under several
adverse factors including the following: (i) AIG did not have a
relatively small exposure to loss associated with credit swaps sold
by certain variable interest entities; (ii) AIG's exposure to loss
associated with credit protection assumed by AIG Financial Products
Corp. and AIG Trading Group Inc., including their respective
subsidiaries on portfolios of loans or debt securities was not
remote, even in severe recessionary market scenarios; and (iii)
AIG's financial statements and financial information, as contained
in and incorporated by reference into the Prospectus, were not
presented in conformity with Generally Accepted Accounting
Principles. The Complaint further alleges that the
defendant-underwriters could have and should have discovered AIG's
misstatements and omissions contained in the Prospectus before it
was filed with the SEC and distributed to the investing public. The
defendant-underwriters were required to conduct due diligence of
the risks associated with the AIG Junior Debentures A-5, as well as
the accuracy of the information contained in the Prospectus.
Further, brokers and financial advisors may have purchased an
unsuitable amount of AIG Junior Debentures A-5 in their clients'
accounts, thereby creating a significant over-concentration.
Over-concentration exists when 10% or more of the investment
portfolio is invested in a single security or sector. Klayman &
Toskes reminds investors of the benefits of filing an individual
arbitration claim, as opposed to participating in a class action
lawsuit. By participating in a class action lawsuit, an investor
will most likely recover only pennies on the dollar. However, if
one has lost $250,000 or more in AIG Junior Debentures A-5, it may
be more beneficial for them to file an individual securities
arbitration claim. In 2003, Klayman & Toskes conducted a
detailed study of securities arbitration versus class action. The
study concluded that investors who file a securities arbitration
claim traditionally obtain an overall higher rate of recovery as
opposed to participating in a class action lawsuit. To view the
full results of the comparison, please visit our web-site:
http://www.nasd-law.com/documents/classvr.pdf The attorneys at the
Law Firm of Klayman & Toskes are dedicated to aggressively
pursuing claims on behalf of investors who have suffered
significant losses. Klayman & Toskes, an experienced, qualified
and nationally recognized securities litigation law firm, practices
exclusively in the field of securities arbitration and litigation.
It continues its representation of investors throughout the world
in securities arbitration and litigation matters against major Wall
Street brokerage firms. If you lost $250,000 or more in AIG Junior
Debentures A-5 and you wish to discuss your legal options at no
obligation, please contact Steven D. Toskes, Esquire or Jahan K.
Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956,
or visit us on the web at http://www.nasd-law.com/. DATASOURCE: The
Securities Law Firm of Klayman & Toskes, P.A. CONTACT: Steven
D. Toskes, Esquire or Jahan K. Manasseh, Esquire, both of Klayman
& Toskes, P.A., 1-888-997-9956 Web site:
http://www.nasd-law.com/
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