AIG to end Ohio pen­sion funds’ suit with $725 mil­lion pay­out

Austin American-Statesman - - BUSINESS & PERSONAL FINANCE -

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.

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