AIG unable to dismiss employee suit alleging that AIG invested employee pensions too heavily in AIG stock

A federal judge ruled on Thursday that employees and former employees of American International Group, Inc. (NYSE: AIG) may maintain a suit against AIG for investing too heavily in its own stock.  The judge found that these employees could prove that AIG had a fiduciary duty to manage these funds for the employees, and that investing in its own stock was a violation of its fiduciary duty.  The ruling amounted to a partial victory for AIG in that the judge found that participants of a Puerto Rican unit's pension fund did not have standing to maintain the same type of suit.  For more information, please see In Re American International Group Inc. 08-cv- 5722, U.S. District Court, Southern District of New York (Manhattan).