We have been reporting in our blog recently about several high profile investor class action lawsuits involving companies that have allegedly provided shareholders with false information.
Remember, if you are an investor and a business has provided you with false financial claims resulting in a loss of money, you could potentially hold the business, as well as its board of directors, liable. Often, investor lawsuits involve companies that provide people with flawed pictures of current or past finances, business prospects or expected financial results.
A.I.G. Settles Shareholder Lawsuit for $1 Billion
We bring up this subject because recently there was a massive settlement involving shareholders. According to the Wall Street Journal, American International Group (A.I.G) has agreed to a $970.5 million settlement with investors who accused it of misleading them during the subprime mortgage crisis that took place several years ago.
The Journal reported that the settlement is one of the largest to come out of the 2008 housing crisis. Lawyers involved in the case said it is “the largest shareholder class-action settlement in a case in which no criminal or regulatory enforcement actions were ever pursued,” according to the news outlet.
The lawsuit claimed that A.I.G. failed to disclose risks it took while completing credit default swaps. It said that the failure to disclose the information led investors to “buy stock and debt they otherwise would not have bought, resulting in billions of dollars in losses.”
The settlement will cover investors who sustained losses from March 16, 2006, to September 16, 2008.
Pursuing an Investor Class Action Lawsuit
As this case shows, investor class action settlements and verdicts can be quite substantial. If you are a shareholder, you deserve an accurate portrayal of a company’s finances. The failure of a company to release accurate financial information could result in substantial investor losses, which can affect a person’s retirement plans and/or lifestyle.
If you have suffered financially because a company misled you, you may be able to file a class action lawsuit.
Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers