AIG Settles Case

Federal and state regulatory authorities are expected to announce a $1.6 billion settlement today with American International Group Inc., which has been accused of involvement in an insurance bid-rigging case and the use of deceptive accounting practices, according to people familiar with the settlement terms.

The settlement will be split by the Securities and Exchange Commission, which will receive about $800 million to compensate injured investors, and New York regulators who brought a civil case against AIG last summer.

AIG Settles Case
Source: Hartford Courant