The American International Group (AIG) will pay $725 million to settle a fraud case with Ohio-based pension funds that claimed the company committed stock manipulation and accounting fraud.
The case followed a collapse in AIG's stock price after the firm re-stated earnings for years before 2004. Following that restatement, the company became representative of the 2008 collapse, particularly when it found itself to be the beneficiary of a federal bailout.
AIG will pay $175 million within 10 days of the settlement and says it hopes to raise $550 million through a stock offering next spring.
- SEC filing detailing AIG's settlement with Ohio pension funds