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Report Says AIG Expected to Pay $1 Billion-plus to Settle Probes

American International Group Inc. (AIG) is expected to pay over $1 billion to settle civil-fraud investigations by state and federal authorities, according to a report...
January 18, 2006

American International Group Inc. (AIG) is expected to pay over $1 billion to settle civil-fraud investigations by state and federal authorities, according to a report published in the January 13 editions of the Wall Street Journal.  The settlement, which would be one of the highest penalties ever paid by a financial company, would resolve the lawsuit filed in May by the New York attorney general's office and the state's insurance department charging AIG and Maurice Greenberg, its former chief executive, of using improper accounting to improve the appearance of its financial reports and misleading investors and state regulators.  Sources familiar with the investigations say that the settlement, which would also include the Securities and Exchange Commission, could be reached within two or three weeks.  Greenberg, who was named as a defendant in the May lawsuit, and his lawyers are working on a legal defense and are not participating in the settlement discussions.

AIG May Put Up to $1.5 Billion in Settlement (Reuters 1/13/06)

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