American International Group AIG Class Action Settlement In AIG Securities Class Action Lawsuit.
A class action settlement has been reached in a class action lawsuit against insurance and financial services organization American International Group, Inc. (AIG) and certain of its directors and officers (collectively “Defendants”) involving allegations of AIG’s alleged fraud from October 1999 to April 2005 involving alleged anti-competitive behavior, accounting violations and stock price manipulation, according to class action settlement news reports.
The American International Group AIG class action lawsuit complaint reportedly involved the following claims:
- That American International Group AIG allegedly engaged in accounting fraud, resulting in a $3.9 billion dollar restatement in May 2005 that included various types of transactions, including allegations relating to a $500 million no-risk fraudulent reinsurance transaction that American International Group AIG entered into with General Reinsurance Corp. in order to artificially boost AIG’s reported claims reserves. One American International Group AIG executive and four Gen Re executives were reportedly found guilty of securities fraud in relation to that transaction.
- That American International Group AIG paid tens of millions of dollars in undisclosed contingent commissions to insurance brokers and participated in a bid-rigging scheme with insurance brokers and certain insurance companies in order to divide the market for certain types of insurance.
- That American International Group AIG engaged in stock price manipulation, in which American International Group AIG executives ordered AIG traders to inflate AIG’s stock price.
Under the AIG securities class action lawsuit settlement, AIG has agreed to pay $725 million to AIG shareholders. An initial payment of $175 million will reportedly be payable after entry of a court order granting preliminary approval of the AIG class action settlement. The remaining $550 million may be funded by AIG through one or more common stock offerings. If AIG does not fund the $550 million before court approval of the AIG class action settlement, the plaintiffs may terminate the agreement, elect to acquire freely transferable shares of AIG common stock with a market value of $550 million provided AIG is able to obtain all necessary approvals, or extend the period for AIG to complete a stock offering in order to fund the remainder of the AIG class action settlement.
Previous AIG class action settlements announced included a $72 million settlement with General Reinsurance Corporation, a $97.5 million settlement with PricewaterhouseCoopers LLP and a $115 million settlement with CEO Maurice R. “Hank” Greenberg and other AIG executives (Howard I. Smith, Christian M. Milton and Michael J. Castelli) and related corporate entities (C.V. Starr & Co., Inc. and Starr International Co., Inc.).
If You Have Thoughts On The American International Group AIG Securities Class Action Settlement, Share Your Class Action Settlement Comments Below.
OMG I Finally think I am getting somewhere with a ‘FED APPROVED’ ID KIT, by CHARTIS, BY AIG, MERGER / AFFILIATE WITH GE and or affiliates holding companies who stole my identity and laundered my funds!
I am apart of this class action and I mailed in signed letter I worked for AIG in Huntington Beach office but I have nit received a check or reply ?