American International Group Inc (AIG.N) failed to persuade a California judge to dismiss a lawsuit by Pacific Investment Management Co that accuses AIG of lying about its subprime mortgage exposure prior to the 2008 financial crisis.<\/p>\n
Judge Thierry Patrick Colaw of Orange County Superior Court, in a decision dated Tuesday, rejected AIG’s argument that Pimco, a unit of German insurer Allianz SE (ALVG.DE), waited too long to sue over the alleged deception.<\/p>\n
But the judge said AIG can appeal immediately, noting that federal courts in comparable cases have reached differing conclusions over the proper time limit.<\/p>\n
Pimco is seeking to recoup losses allegedly suffered by more than 60 funds, including its flagship Pimco Total Return (PTTRX.O), over securities purchased between 2006 and 2008.<\/p>\n
Newport Beach, California-based Pimco sued AIG last year after opting out of a $970.5-million class-action settlement between the insurer and other investors.<\/p>\n
AIG had been accused of misleading investors about its exposure to subprime mortgages and credit default swaps, culminating in $182.3 billion of federal bailouts.<\/p>\n
Some plaintiffs opt out of class-action settlements when they hope to recover more by suing on their own. Pimco has about $1.5 trillion of assets under management.<\/p>\n
AIG spokesman Jon Diat in a statement said the New York-based company disagreed with Colaw’s decision and will argue on appeal that “the more recent and better-reasoned decisions of the federal courts of appeal should be followed.”<\/p>\n
Pimco declined to comment on Colaw’s decision.<\/p>\n
AIG had brought related litigation in U.S. District Court in Manhattan seeking to thwart Pimco’s federal securities law claim. A judge there ruled on April 18 that letting the California court handle the case was better than “piecemeal” litigation.<\/p>\n
The case is Pacific Investment Management Co et al v. American International Group Inc, California Superior Court, Orange County, No. 30-2015-00779738-CU-SL-CXC.<\/p>\n","protected":false},"excerpt":{"rendered":"
American International Group Inc (AIG.N) failed to persuade a California judge to dismiss a lawsuit […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-451","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n