The United States Court of Appeals for the Second Circuit has unanimously affirmed a lower court’s decision dismissing a shareholder lawsuit brought against New York-based
Shareholders led by the Louisiana Municipal Police Employees' Retirement System pension fund sued AIG, alleging that the company’s directors had failed in their fiduciary duties, leading to AIG’s near collapse and subsequent bailout by the government.
In upholding the March 2010 ruling of U.S. District Court Judge Laura Taylor Swain, the three-judge panel agreed that the plaintiffs failed to prove that AIG executives and directors of willfully ignored "red flags" prior to the company’s troubles.
“We affirm the dismissal of Louisiana Municipal’s complaint for substantially the reasons stated in the district court’s thorough and well-reasoned opinion,” a summary order issued by the panel this week states.
