Ex-AIG Employee Sues Company’s Auditor 

A former employee of American International Group sued AIG’s auditor, claiming PricewaterhouseCoopers was negligent in its audits of the insurer and that the AIG board should have pursued a claim against the accounting firm.

The suit, reported by Reuters and filed Tuesday in Manhattan Federal Court, is a derivative action on behalf of AIG Incentive Savings Plan filed by Wanda Mimms. Both PwC and AIG’s board were named as defendants.

Ms. Mimms contends that from its audits, PwC should have known the share price of AIG was inflated by inaccurate financial statements during the period from late February 2008 to late January 2009.

A demand in 2010 that AIG’s board seek action against PwC was rejected.

The lawsuit demands PwC make the incentive plan whole for its losses and additional relief.

Neither PwC nor AIG commented. 

Archived Issues

• Reserve Deficiency Report Sends AIG Stock Tumbling
• Auto Claims Spiking As Gas Prices Tank
• Construction Insurance Coverage: Building The Case for Service and Safety
• U.S. Risk Managers Should Follow Lead Of Europeans In Buying Credit Insurance
• Fitch: Insurance Market To See Underwriting Loss For ‘09