The ghosts of the 2008 Financial Crisis continue to haunt AIG.

In a lawsuit filed yesterday in U.S. District Court, Northern District of Illionois, 25 funds managed by Nuveen [profile] made five allegations of securities fraud against the global insurer.

Among other things, the 237-page complaint alleges that AIG executives did not accurately disclose the health of its credit debt swap (CDS) portfolios during the credit crisis.

Plaintiffs suffered tens of billions of dollars in losses, at least, based on false and materially misleading statements that AIG, certain of its executives, directors, underwriters and outside auditor made.

The plaintiff funds are:
DOW 30 SM ENHANCED PREMIUM & INCOME FUND,
NUVEEN NWQ MULTI-CAP VALUE FUND,
NUVEEN DIVIDEND VALUE FUND,
NUVEEN EQUITY PREMIUM OPPORTUNITY FUND,
NUVEEN LARGE CAP VALUE FUND,
NUVEEN TAX-ADVANTAGED TOTAL RETURN STRATEGY FUND,
NUVEEN CORE EQUITY ALPHA FUND,
NUVEEN EQUITY PREMIUM AND GROWTH FUND,
NUVEEN EQUITY PREMIUM INCOME FUND,
NUVEEN LARGE CAP SELECT FUND,
NUVEEN DIVERSIFIED DIVIDEND AND INCOME FUND,
NUVEEN CREDIT STRATEGIES INCOME FUND,
NUVEEN PREFERRED INCOME OPPORTUNITIES FUND,
NUVEEN STRATEGY BALANCED ALLOCATION FUND,
NUVEEN NWQ LARGE CAP VALUE FUND,
NUVEEN ENHANCED CORE EQUITY FUND,
NUVEEN STRATEGY CONSERVATIVE ALLOCATION FUND,
NUVEEN GROWTH FUND,
NUVEEN EQUITY PREMIUM ADVANTAGE FUND,
NUVEEN U.S. EQUITY COMPLETENESS FUND,
NUVEEN QUALITY PREFERRED INCOME FUND 2,
NUVEEN QUALITY PREFERRED INCOME FUND 3,
NUVEEN QUALITY PREFERRED INCOME FUND,
NUVEEN TAX- ADVANTAGED DIVIDEND GROWTH FUND,
NUVEEN PREFERRED SECURITIES FUND.

The suit charges AIG and eight former executives with "violations of the Securities Exchange Act of 1934 (“Exchange Act”), the Illinois Securities Law of 1953, as well as claims for common law fraud and unjust enrichment, against American International Group, Inc. (“AIG” or the “Company”) and individual Defendants arising from their misconduct during the period March 16, 2006 to September 16, 2008 (the “Relevant Period”) relating to AIG’s exposure to the subprime mortgage market."

The suit is filed as Dow 30 Enhanced Premium & Income Fund v. American International Group Inc., 13-cv-05612, U.S. District Court, Northern District of Illinois (Chicago):Case: 1:13-cv-05612.

AIG declined comment to MFWire. 

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