Kevin Reed, Accountancy Age, Monday 19 July 2010 at 09:35:00

AIG to make payout after allegations of accounting fraud and stock price manipulation

US insurance giant AIG has agreed to pay out $725m (473m) in a settlement against a lawsuit brought by three Ohio pension funds.

The payout follows a lawsuit alleging AIG had committed accounting fraud, manipulated stock price and taken part in anti-competitive behaviour between 1999 and 2005.

Court approval is required before the payment can be made.

Further reading:

SEC charges Gen Re for role in AIG accounting fraud

Former AIG executives accused of accounting fraud

US prosecutor probe targets ex-London chief in AIG collapse