American International Group Inc. (AIG) has filed suit against Bank of America (BofA) in an effort to get back some of the billions of dollars the insurer says it lost as a result of BofA’s massive financial fraud. The suit marks another chapter in the continuing legal troubles of the nation’s largest bank.
According to the suit, AIG says BofA and its subsidiaries Countrywide and Merrill Lynch misrepresented the quality of mortgages it sold to investors. As a result, AIG said it lost $28 billion in investments.
"Defendants were engaged in a massive scheme to manipulate and deceive investors, like AIG, who had no alternative but to rely on the lies and omissions made," the complaint said. The suit was filed in the New York State Supreme Court in Manhattan.
Last month, 15 plaintiffs—including BlackRock Inc., T. Rowe Price Group Inc. and TIAA-CREF—filed suit against BofA after they said a settlement BofA proposed was unsatisfactory.
Read more about AIG’s suit against BofA.