AIG To Pay $8M To End Ore. Pension Loss Fraud Suit

Law360, New York (February 25, 2010, 6:07 PM EST) -- American International Group Inc. agreed Thursday to pay out $8 million to settle a securities fraud lawsuit that linked $15 million in losses from an Oregon state pension fund to the insurer's concealment of unethical activity for several years.

Oregon Attorney General John Kroger and state Treasurer Ben Westlund said that AIG violated the state's securities law by repeatedly failing to disclose unethical conduct, including a bid-rigging scheme with other insurers.

The activities inflated the value of shares in the company between 2000 and 2005, causing...
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