Eight AIG Stock-Drop Cases Meld into One

A federal judge has consolidated eight employee stock-drop cases against American International Group, Inc. (AIG)

U.S. District Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York ruled that the cases involved some of the same defendants and factual and legal issues.

The consolidated case will now move forward as In re American International Group Inc. ERISA Litigation II (08 Civ. 5722).

The suits alleged the company breached its fiduciary duty by keeping the stock as an investment option in its 401(k) plan even after it became clear the company had substantial exposure to the rapidly deteriorating subprime mortgage market.

The court appointed the law firms Squitieri & Fearon, Harwood Feffer, Wolf Popper, and Keller Rohrback to serve as class counsel.