AIG vs MAIDEN LANE II LLC | Concerning Plaintiffs’ ownership of billions of dollars of fraud and other tort claims
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK
AMERICAN INTERNATIONAL GROUP, INC., AMERICAN GENERAL LIFE INSURANCE COMPANY, AIG SECURITIES LENDING CORP., THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK, and THE VARIABLE ANNUITY LIFE INSURANCE COMPANY, Plaintiffs, -against- MAIDEN LANE II LLC, Defendant. excerpt: Plaintiffs American International Group, Inc., American General Life Insurance Company, AIG Securities Lending Corp., The United States Life Insurance Company in the City of New York, and The Variable Annuity Life Insurance Company, by their attorneys, Quinn Emanuel Urquhart & Sullivan, LLP, for their Complaint against Maiden Lane II LLC allege as follows:NATURE OF ACTION
1. This is an action by Plaintiff American International Group, Inc. and its named affiliates (collectively, “AIG” or Plaintiffs) seeking a declaration from the Court as to the proper interpretation of a contract between AIG and Defendant Maiden Lane II (“Maiden Lane II” or “ML II”). Plaintiffs do not seek monetary damages. 2. AIG brings this action to eliminate damaging uncertainty recently and unjustifiably created by or on behalf of Maiden Lane II concerning Plaintiffs’ ownership of billions of dollars of fraud and other tort claims that exist against numerous financial institutions that made material misrepresentations and omissions in securitizing and marketing to AIG residential mortgage-backed securities (“RMBS”) between 2005 and 2007. 3. The financial institutions that created and/or sold the RMBS provided offering materials that assured AIG that each mortgage loan underlying the RMBS met certain quality standards. In reality, the financial institutions, driven by a single-minded desire to increase their share of the lucrative RMBS market and the considerable fees generated by it, abandoned the stated underwriting guidelines, ignored the represented credit quality metrics, and packed the RMBS with thousands of defective mortgages. In 2008, when the defective loans experienced unprecedented rates of delinquency, default, and foreclosure, the performance and value of the RMBS plummeted, causing AIG and its subsidiaries great harm. [...]