LANSING -  Attorney General Mike Cox and Treasurer Robert J. Kleine today announced that the State of Michigan is taking legal action against American International Group, Inc. (AIG) to protect more than 600,000 Michigan pensions. Cox filed a motion in the Southern District of New York asking the Court to appoint the State of Michigan Retirement Systems (SMRS) as the lead plaintiff in the pending class action lawsuit there against AIG.

            "AIG misled investors, resulting in Michigan's pension funds losing an estimated $109 million and impacting hundreds of thousands of Michigan citizens," said Cox. "I will do everything within my power to get money back for the state's pension fund."

            AIG was heavily invested in insurance-like contracts called Credit Default Swaps, which were tied to the subprime mortgage market. The lawsuit says AIG broke federal securities laws by misleading investors about the value of their Credit Default Swaps tied to the subprime mortgage market during the period covered by the lawsuit, November 10, 2006 through June 6, 2008.

            "This sends a clear message that the State of Michigan will take every step possible to recover lost funds," said State Treasurer Kleine, sole fiduciary of the SMRS. "We have an obligation to the nearly 600,000 participants and beneficiaries who are depending on these pension funds for their retirement."

            With operations in more than 130 countries, AIG is one of the world's largest insurance and financial services companies. AIG companies serve commercial, institutional and individual customers through worldwide property-casualty and life insurance networks. In addition, AIG companies provide retirement services, financial services and asset management.

            The State of Michigan Retirement Systems (SMRS), which invests on behalf of Michigan Public School Employees, State Employees, State Police, and Michigan Judges, hold combined assets of approximately $60 billion, making the SMRS one of the largest pension systems in the nation.

            If appointed lead plaintiff, Michigan will manage the litigation on behalf of all AIG stockholders, negotiate potential settlement terms, and seek to maximize the recovery for the class. If the case goes to trial, the lead plaintiff would make all strategy decisions.

            Cox recently sought to take the lead in a similar class action against Bear Stearns related to losses in the sub-prime market.

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