AIGs 47.66% Trading Surge to 219th in Volume Amid Legal Battle Over D&O Coverage Denial

On September 2, 2025, American International Group (AIG) traded with a volume of $490 million, a 47.66% increase from the prior day, ranking 219th in market activity. The stock closed down 0.33%, reflecting pressure from ongoing legal disputes involving its D&O insurance policies.

Former Navidea Biopharmaceuticals directors Agnieszka Winkler and Malcolm Witter filed a lawsuit against AIG Specialty Insurance, alleging the insurer denied coverage for their legal defense in a shareholder class action. The dispute centers on whether AIG’s policies, which included a $1 million management liability policy and a $4 million Side A D&O policy, should cover defense costs related to a Delaware securities lawsuit. AIG reportedly invoked a “Specific Event Exclusion” tied to Navidea’s 2023 financial disclosures, including a Texas loan litigation and a NYSE delisting issue, to justify the denial.

The directors argue the exclusion does not apply to the claims against them, which involve alleged misconduct unrelated to the cited events. They claim AIG failed to conduct a thorough investigation and prioritized profit over policy obligations. The case highlights potential vulnerabilities in D&O insurance claims processes, raising questions about how insurers interpret policy exclusions during high-stakes litigation.

The lawsuit seeks breach of contract damages, bad faith compensation, and legal cost recovery. While AIG has not yet responded in court, the case could influence future D&O insurance practices and policy drafting. The outcome may set a precedent for insurer accountability in covering defense costs amid complex corporate disputes.