Cash Money

AIG to Pay Investors $725M

This probably wasn’t the way AIG thought it would channel borrowed funds back to taxpayers. The insurance giant, which was bailed out by the government to the tune of $182 billion in 2008, agreed Friday to settle allegations of fraud by paying out $725 million to investors. In a class action suit led by three Ohio pension funds for public employees, teachers, and firefighters, AIG was accused of anti-competitive market division, accounting violations, and stock price manipulation between October 1999 and April 2005. "The serious misconduct by AIG more than deserves today's large settlement," Ohio Attorney General Richard Cordray said. The settlement still requires court approval, which will be followed by immediate payment of $175 million. The other $550 million would be paid out later.