AIG to Pay $725M in Fraud Settlement

AIG has agreed to pay $725 million to settle a class-action fraud lawsuit by Ohio pension funds.
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has agreed to pay $725 million to settle a class-action fraud lawsuit by Ohio pension funds.

The settlement with the insurance company resolves allegations of fraud from October 1999 to April 2005 involving anti-competitive market division, accounting violations and stock-price manipulation, according to the Ohio attorney general's office.

"This historic settlement is an excellent result for all shareholders harmed by AIG's misconduct, including Ohio's teachers, firefighters, police officers, and public employees. Ohio is determined to send a strong message to the marketplace that companies who don't play by the rules will pay a steep price," said Richard Cordray.

The Ohio Public Employees Retirement System (OPERS), the State Teachers Retirement System of Ohio and the Ohio Police and Fire Pension Fund (collectively the "Ohio Funds") brought the suit.

This article was written by a staff member of TheStreet.