Court Approves Initial Distribution of Net Settlement Fund in AIG 2008 Securities Litigation
1/30/2017 - On January 30, 2017, Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York granted the motion of Lead Plaintiff, the State of Michigan Retirement Systems (“State of Michigan”), to conduct an initial distribution of the net settlement fund in In re American International Group, Inc. 2008 Securities Litigation. Barrack, Rodos & Bacine served as a Lead Counsel representing the State of Michigan in the securities class action against American International Group, Inc. After six years of contentious litigation, the parties settled the case in 2014 for $970.5 million, one of the largest settlements achieved in a securities class action lawsuit stemming from the 2008 financial crisis. The settlement amount achieved in the case was also and continues to stand as the largest settlement in a securities class action lawsuit in the absence of a criminal indictment, an SEC enforcement action, or a restatement of a company’s financial records.
On March 20, 2015, Judge Swain approved the settlement, observing that not a single class member had objected to the settlement, which she found to be an “outstanding result obtained on behalf of the settlement class.” Click here for a summary of the case prosecution and settlement. On October 31, 2016, after the claims administration work was completed, the State of Michigan filed a motion to conduct an initial distribution of the net settlement fund.
BR&B will work with the claims administrator, Gilardi & Co. LLC, the escrow agent and the distribution agent to ensure that, as proposed, 80% of the money in the net settlement fund is distributed promptly according to the determinations made by Gilardi, which the Order expressly approves as fair, reasonable and adequate to all members of the Class. Other provisions in the Order include: (1) approval of our acceptance of late but otherwise valid claims; (2) directing the initial distribution of the net settlement fund to the Class Members who submitted claim forms that Gilardi determined to be eligible to share in the net settlement proceeds, in the amounts as set forth in the Distribution Motion and Gilardi’s supporting declaration; and (3) approval of the plan set forth in the Distribution Motion for redistribution of any funds remaining in the net settlement fund following the initial distributions to eligible claimants. Click here for a copy of the Court’s January 30, 2017 Order.
We anticipate that the initial distribution to eligible claimants will take place within 30 days, and that a second distribution to eligible claimants will take place in the second half of 2017.