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Daily Insurance Industry News
Saturday 20th of January 2018
July 17, 2010

AIG agrees $725m payout for miffed pension funds

by Gill Montia

Story link: AIG agrees $725m payout for miffed pension funds

American International Group (AIG) is to pay $725 million to settle accusations of fraud brought by three Ohio pension funds.

In a class action law suit, the funds allege that between 1999 and 2005 AIG engaged in share price manipulation, anti-competitive behaviour and accounting fraud that resulted in millions in losses for shareholders.

Ohio Attorney General, Richard Cordray, said the latest settlement combined with previous payouts by AIG will have provided around $1 billion in compensation to investors.

According to the majority state-owned insurer, the settlement will allow it continue to focus its efforts on paying back taxpayers.

Following court approval of the deal, AIG is expected to raise $550 million though an issue of new shares to help meet the bill.

 

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