The offices of Pacific Investment Management Co (PIMCO) (R) are shown in Newport Beach, California August 4, 2015. REUTERS/Mike Blake

The offices of Pacific Investment Management Co (PIMCO) (R) are shown in Newport Beach, California August 4, 2015. REUTERS/Mike Blake

NY judge clears Pimco to pursue California lawsuit against AIG

 

This is a reuters.com article.

 

A federal judge on Monday cleared the way for Pacific Investment Management Co to pursue a California lawsuit accusing American International Group Inc of causing big losses by lying about its subprime mortgage exposure before its 2008 bailout.

U.S. District Judge Paul Crotty in Manhattan said it made sense for a California state court to handle Pimco’s case, rather than have him decide, as AIG wanted, whether the unit of German insurer Allianz SE waited too long to sue.

Jon Diat, an AIG spokesman, said the Manhattan-based insurer disagreed with Crotty’s decision but looks forward to defending against Pimco in California.

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