Compass Lexecon’s Client Prevails in the NYAG’s Objection to a $115 Million Class Action Settlement

On January 7, 2013, U.S. District Judge Deborah Batts denied the New York Attorney General’s (“NYAG”) objection to a $115 million settlement in an AIG securities litigation. Defendants included AIG, Hank Greenberg, and C.V. Starr & Co. The NYAG claimed the settlement was unfair and inadequate because plaintiffs’ expert erred in his statistical analysis of some of the alleged corrective disclosures. The NYAG further claimed that correcting the mistake would produce a higher settlement amount in the case. Compass Lexecon President Professor Daniel R. Fischel was retained by Thomas A. Dubbs and Thomas G. Hoffman at Labaton Sucharow and submitted a declaration concluding that the plaintiffs’ expert’s mistake was not material and did not affect the amount and reasonableness of the settlement. In reaching her decision, Judge Batts favorably cited Professor Fischel’s declaration regarding the statistical significance of the error. The team supporting Professor Fischel was led by Vince Warther and included Mike Keable, Laurel Van Allen, and others in the Chicago office.