AIG will pay $1 billion to Ohio’s pension funds, others: Class-action settlement is largest in Wall Street crisis, Cordray says [The Columbus Dispatch, Ohio]

July 16--Attorney General Richard Cordray said today that Ohio pension funds and others will receive $1 billion in a settlement with disgraced insurance giant AIG.

The settlement -- much of which will go to three of Ohio's five pension systems -- is the largest class-action sum reached between any unit of government in the country and a financial firm since the Wall Street crisis broke in 2008, Cordray said.

American International Group Inc. was accused of violating antitrust laws by dividing markets with competitors, committing accounting fraud and manipulating stock prices. The alleged misconduct occurred between October 1999 and April 2005.

"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," Cordray said in a prepared statement.

AIG spokesman Mark Herr said in a statement: "We are pleased to have resolved this matter. This settlement ends a long-standing lawsuit, allowing AIG to continue to focus its efforts on paying back taxpayers and restoring the value of our franchise for the benefit of all our stakeholders."

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