NU Online News Service, Jan. 5, 3:42 p.m. EST
A former employee of American International Group sued AIG's auditor, claiming PricewaterhouseCoopers was negligent in its audits of the insurer and that the AIG board should have pursued a claim against the accounting firm.
The suit, reported by Reuters and filed Tuesday in Manhattan Federal Court, is a derivative action on behalf of AIG Incentive Savings Plan filed by Wanda Mimms. Both PwC and AIG's board were named as defendants.
Ms. Mimms contends that from its audits, PwC should have known the share price of AIG was inflated by inaccurate financial statements during the period from late February 2008 to late January 2009.
A demand in 2010 that AIG's board seek action against PwC was rejected.
The lawsuit demands PwC make the incentive plan whole for its losses and additional relief.
Neither PwC nor AIG commented.
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