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Thanks to a 2011 Second Circuit decision, AIG has trimmed down a class action alleging that it misled investors about its exposure to mortgage-backed securities. In a Friday ruling, a U.S. district judge in Manhattan dismissed claims that AIG's offering materials from 2006 to 2008 misstated its credit risk.
Just as they did after officials reached similar settlements with UBS and Bank of America, plaintiffs lawyers in private multidistrict litigation against the banks may argue that the JPMorgan deal sidelines class claims in the MDL.
Judge Rejects 'Worthless' Deal
A New York federal judge has rejected a shareholder class action settlement and request for $200,000 in plaintiffs' attorney fees, calling the deal virtually worthless to shareholders. The case stemmed from the 1998 purchase of London insurance broker Willis Corroon Group P.L.C. by an investor group led by Kohlberg Kravis Roberts & Co. (KKR).Trending Stories
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