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AIG reaches $960 million settlement on class-action lawsuit

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American International Group Inc. announced in a recent SEC filing it has agreed to a mediator's proposal to settle for $960 million a consolidated class-action lawsuit regarding the firm's role in the 2008 financial crisis.

The lawsuit, which the U.S. District Court in New York consolidated from eight separate class-action lawsuits in March 2009, was led by the $54.8 billion State of Michigan Retirement Systems and accused AIG of securities fraud.

The Lansing, Michigan-based pension fund was lead plaintiff representing investors in “publicly issued common stock, corporate units, bonds, subordinated debentures and notes of AIG from March 16, 2006, through Sept. 16, 2008,” said a news release from The Miller Law Firm, lead counsel for the Michigan Retirement Systems.

The settlement was reached through mediation sessions through retired U.S. District Judge Layn Phillips.

E. Powell Miller, CEO of The Miller Law Firm, did not immediately return a phone call seeking further information.

Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.