AIG Settles Big-Rigging, Reporting Probe For $13.5M

Law360, New York (March 18, 2008, 12:00 AM EDT) -- American International Group has agreed to pay Pennsylvania’s Insurance Department $13.5 million in investigation costs and penalties to put to rest allegations that the insurance company filed false financial information.

Under the terms of a settlement agreement announced Monday, AIG will pay a $6.6 million penalty and reimburse the department for costs incurred during an investigation that also delved into alleged bid-rigging and commission practices of AIG’s Pennsylvania-based subsidiaries. In agreeing the settlement, AIG neither admitted nor denied any wrongdoing.

“Financial reporting must be accurate for...
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