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Member, Beacon International Group, Ltd.
NEW YORK—U.S. District Court Judge Deborah A. Batts has given preliminary approval to American International Group Inc.'s proposed settlement with investors involving charges that anti-competitive market division, accounting violations and stock price manipulation misled them about the New York insurer's value.
Richard Cordray, Ohio's attorney general at the time, in July 2010 announced the $725 million settlement involving allegations about events that occurred from October 1999 to April 2005.
Pension plans including the Ohio Public Employees Retirement System, the Teachers Retirement System of Ohio, and the Ohio Police and Fire Pension Fund led the class action suit that was filed in October 2004 in U.S. District Court in the Southern District of New York.
“We are pleased to have resolved this longstanding lawsuit,” an AIG spokesman said Wednesday in an email. “With this and other legacy matters behind us, we are better able to focus our efforts on taxpayers recouping their investment in AIG and restoring the value of our franchise for the benefit of all our stakeholders.”
A fairness hearing on the proposed settlement is set for Jan. 31, 2012.
COLUMBUS, Ohio—American International Group Inc.'s recent $725 million settlement reached with three Ohio pension plans resolves another legal distraction but has raised questions about the plans for funding the pact.