SOURCE: Klayman & Toskes

October 21, 2008 12:13 ET

Notice to All Investors of AIG Junior Subordinated Debentures, Series A-5 From the Securities Law Firm of Klayman & Toskes

NEW YORK, NY--(Marketwire - October 21, 2008) - The Securities Law Firm of Klayman & Toskes, P.A.,, 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 ("AIG Junior Debentures A-5"). These underwriters include:

--  Banc of America Securities (NYSE: BAC)
--  Bear Stearns n/k/a JPMorgan Chase (NYSE: JPM)
--  Citigroup Global Markets (NYSE: C)
--  Merrill Lynch (NYSE: MER)
--  Morgan Stanley (NYSE: MS)
--  RBC Capital Markets (NYSE: RBC)
--  UBS Securities (NYSE: UBS)
--  Wachovia Capital Markets (NYSE: WB)
--  Wells Fargo Securities (NYSE: 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:

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

Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.