The American insurance giant, AIG, has reportedly agreed to pay $725 million to settle an ongoing case of fraud against it. This settlement has been agreed by AIG, and is likely to be the biggest settlement amount in insurance history. The case had come after three Ohio pensioners had filed a law suit against the company.
Reports say that AIG was involved in ‘stock price manipulation, anti-competitive behavior and accounting fraud” (BBC), which was in progress from 1999 to 2005. As per these fraudulent actions committed by AIG, the company faced millions of dollars loss in shares.
The court is now left to give its approval before the payments would be made, by which the first $170 million would be paid within days as the court provides approval. The next $550 million would be paid as issue of new shares in the market.