April 19 A federal appeals court ruled in favor
of American International Group Inc in concluding that
the insurer's $10 billion lawsuit against Bank of America Corp
over mortgage losses belongs in state court, not federal
The 2nd U.S. Circuit Court of Appeals on Friday threw out a
lower court order denying AIG's bid to move the case to a New
York state court. AIG's lawsuit was filed in August 2011 but has
been largely on hold because of the venue fight.
AIG accuses Bank of America and its Countrywide and Merrill
Lynch units of making fraudulent misrepresentations in
connection with $28 billion of residential mortgage-backed
securities AIG bought, causing large losses for the insurer.