* Resolves shareholder case against former CEO Greenberg,
* Judge calls accord 'fair, reasonable and adequate'
* AIG's $725 mln settlement to resolve claims approved in
By Nate Raymond
NEW YORK, April 10 A federal judge on Wednesday
approved a $115 million settlement between American
International Group Inc shareholders and former CEO
Maurice "Hank" Greenberg and other defendants over alleged
improper accounting at the insurance giant.
The accord is the latest in a string of settlements to spill
out of class-action securities fraud litigation tied to
practices at the insurer dating to 1999. In total, more than
$900 million in settlements have been approved with defendants
U.S. District Judge Deborah Batts in Manhattan gave final
approval to the pact at a court hearing, calling it "fair,
reasonable and adequate."
Batts approved a $725 million settlement with AIG in
February 2012. She earlier approved a $97.5 million accord with
accounting firm PricewaterhouseCoopers.
The settlement resolves a 2004 lawsuit accusing the
defendants of misleading investors in connection with an alleged
illegal bid-rigging scheme in the insurance industry. The
lawsuit also accused Greenberg and others of making false and
misleading statements about an alleged accounting fraud that
resulted in a $3.9 billion restatement by AIG in 2005.
The alleged activities took place well before AIG accepted
$182 billion of taxpayer bailouts during the financial crisis in
2008 and 2009.
Among those participating in the settlement are Greenberg,
former chief financial officer Howard Smith, two other
executives and two of Greenberg's companies, C.V. Starr & Co and
Starr International Co.
Two Ohio state pension funds acted as lead plaintiffs for
the class, which covers AIG shareholders who bought stock from
October 1999 to April 2005.
An AIG spokesman declined to comment on the settlement.
The case is In re American International Group Inc
Securities Litigation, U.S. District Court, Southern District of
New York, No. 04-08141.