NY judge approves $115 million AIG shareholder settlement

Wed Apr 10, 2013 6:08pm EDT
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By Nate Raymond

NEW YORK (Reuters) - A federal judge on Wednesday approved a $115 million settlement between American International Group Inc (AIG.N: Quote) shareholders and former CEO Maurice "Hank" Greenberg and other defendants over alleged improper accounting at the insurance giant.

The accord is the latest in a string of settlements to spill out of class-action securities fraud litigation tied to practices at the insurer dating to 1999. In total, $937.5 million in settlements have been approved with defendants, including AIG.

U.S. District Judge Deborah Batts in Manhattan gave final approval to the pact at a court hearing, calling it "fair, reasonable and adequate."

"Defendants are pleased that all those claims have been resolved," Robert Dwyer, a lawyer for Greenberg at Boies, Schiller & Flexner, said in a statement.

Batts approved a $725 million settlement with AIG in February 2012. She earlier approved a $97.5 million accord with accounting firm PricewaterhouseCoopers PWC.UL.

In August, a federal appeals court reversed a decision by Batts rejecting preliminary approval of a fourth settlement for $72 million with General Re, a unit of Warren Buffett's Berkshire Hathaway Inc(BRKa.N: Quote).


The settlement with Greenberg and the other defendants resolves a 2004 lawsuit accusing the defendants of misleading investors in connection with an alleged illegal bid-rigging scheme in the insurance industry.   Continued...

A new sign is displayed over the entrance to the AIG headquarters offices in New York's financial district, January 9, 2013. REUTERS/Brendan McDermid