AIG to end Ohio pension funds’ suit with $725 million payout
American International Group Inc. and some of its directors and officers agreed to a $725 million settlement to resolve allegations of wide-ranging fraud laid out in a class-action lawsuit led by three Ohio pension funds.
Ohio Attorney General Richard Cordray said the latest figure will combine with previous AIG settlements reached with secondary defendants to pay about $1 billion to shareholders, including pensions representing firefighters, police, teachers, librarians and others. He characterized it as the 10th-largest securities litigation settlement in U.S. history.
The lawsuit alleged anti-competitive market division, accounting violations and stock price manipulation by AIG between October 1999 and April 2005.