AIG Pays $12.5M To Settle Bid-Rigging Claims

Law360, New York (January 30, 2008, 12:00 AM EST) -- Insurance and investment company American International Group Inc. has agreed to pay $12.5 million to nine states and the District of Columbia to put to rest allegations that the company participated in a bid-rigging scheme in the commercial insurance market.

In addition to the settlement payments, which AIG revealed Tuesday, the company agreed to reform its business practices, including disclosing its insurance brokers’ compensation.

“Under the settlement agreements, AIG denies the allegations and does not admit liability,” the company said. “Nevertheless, to avoid the expense and...
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