According to the complaint filed in U.S. District Court in Manhattan, Ms. Staehr alleges that AIG, under the direction of its officials, including Chief Executive Martin Sullivan and Chief Financial Officer Steven Bensinger, improperly concealed the extent of its exposure to the subprime mortgage crisis.
"Defendants claimed that AIG’s portfolio was so sufficiently diversified that the mortgage market would have to reach 'Depression proportions' before negatively impacting the company," the complaint states. "AIG was not as invulnerable as defendants claimed, however."
AIG, the world's largest insurer by market value, reported a 13% fall in third-quarter profit earlier this month, caused in part by its exposure to the crippled mortgage market.
The complaint alleges that results were hurt by about $1.4 billion in losses in AIG’s investment portfolios and mortgage insurance business.
Ms. Staehr filed the complaint against the officials on behalf of the company, alleging breaches of fiduciary duties, unjust enrichment and other charges for actions between May 2006 and now.
An AIG spokesman had no comment to make.