(Bloomberg) -- Pacific Investment Management Co. accused American International Group Inc. of misleading investors about “colossal” losing bets on unregulated credit-default swaps and subprime debt before the 2008 financial crisis.
Pimco seeks to hold AIG accountable for tens of billions of dollars in shares and bonds that were wiped out because of the insurer’s exposure to the swaps and residential mortgage-backed securities. AIG falsely claimed its exposure was remote even in a severe situation, Pimco said in a complaint filed March 27 in state court in Santa Ana, Calif.
The case was filed by Pimco after it declined to join in a $970.5 million settlement along with other investors.
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