A former employee of American International Group, Wanda Mimms, has filed a lawsuit claiming that PricewaterhouseCoopers was negligent in its audits of AIG. It was also alleged that the board of the bailed-out insurer failed to pursue a claim against the accountants. The suit, filed in federal court in Manhattan, was brought as a derivative action on behalf of the AIG Incentive Savings Plan. The Defendants named in the complaint are PwC and AIG’s board.
The Plaintiff contends the AIG incentive plan held shares in the company from late February 2008 through late January 2009. She says that PwC, as AIG’s auditor, should have known the share price was inflated by inaccurate financial statements. The Plaintiff demanded in July 2010 that AIG’s investment committee pursue action against PwC for losses in the plan. Her demand was referred to AIG’s board, which rejected it in September. The lawsuit demands that PwC make the incentive plan whole for its losses, as well as other relief.
Source: Insurance Journal
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