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Member, Beacon International Group, Ltd.
NEW YORK—A federal judge on Friday approved a $725 million settlement of a securities class action lawsuit that the state of Ohio brought against American International Group Inc.
“Today's final settlement approval out of the Southern District of New York resolves allegations of AIG accounting fraud, collusion and stock price manipulation from Oct. 28, 1999, to April 1, 2005,” the Ohio attorney general's office said a statement commenting on the settlement approved by U.S. District Court Judge Deborah A. Batts.
Judge Batts gave preliminary approval to the settlement last October. The settlement of the suit led by the Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio, and the Ohio Police and Fire Pension Fund originally was announced in 2010.
The plaintiffs had alleged that anti-competitive market division, accounting violations and stock price manipulation misled them about AIG's stock value.
The Ohio attorney general’s office said the next step is the claims process. “It's unclear how much money each shareholder, including those from the Ohio funds, will receive until the claims process is completed. It depends on how many shareholders come forward.” The attorney general’s office said any shareholder who purchased AIG stock from Oct. 28, 1999, to April 1, 2005, could be a class member.
The attorney general’s office noted that additional settlements—including a $115 million settlement with former AIG leader Maurice R. Greenberg, three former AIG executives, as well as C.V. Starr & Co. Inc. and Starr International Co. Inc.—have yet to receive received all the required court approval.
“As we said in July 2010 when this settlement was announced, we have resolved this longstanding litigation so AIG can continue to ensure that the U.S. taxpayers recoup their investment in AIG by restoring the value of our franchise for the benefit of all our stakeholders," an AIG spokesman said in an email.
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.