Three Ohio state pension plans were named as lead plaintiffs in a federal class-action lawsuit to recover up to $75 million in shareholder losses from American International Group, New York. The three state plans claim the losses were incurred as a result of the insurance giant being charged with accounting fraud and insurance bid-rigging. The plans are the $60 billion Ohio Public Employees Retirement System, the $53 billion State Teachers Retirement System of Ohio, and the $9 billion Ohio Police & Fire Pension fund, all in Columbus. Jim Petro, state attorney general, will represent the funds in the case, in U.S. District Court in New York.
The charges originally were brought against the insurance firm in November by New York state Attorney General Eliot Spitzer. The three funds and the $14 billion Ohio Bureau of Workers' Compensation, Columbus, also are lead plaintiffs against Marsh & McLennan Cos., New York, for similar charges. "Obtaining lead-plaintiff status will allow Ohio to champion investor rights and corporate reform as we fight this deep corporate malaise," said Mr. Petro.
Joseph Norton, an AIG spokesman, said, "As a matter of policy, AIG does not comment on legal issues."