On September 27th, the Federal District Court for the Southern District of New York denied defendants' motion to dismiss plaintiffs' securities fraud lawsuit alleging that defendants materially misstated the extent to which AIG had accumulated exposure to the subprime mortgage market through its securities lending program and its credit default swap portfolio. The opinion neatly summarizes the rise and fall of AIG and explains its role in the market for CDOs and CDS. In re American International Group, Inc. 2008 Securities Litigation.