American International Group agreed to pay $725 million to Ohio and Florida public pension plan funds in a securities class-action settlement to resolve bid-rigging allegations that the funds said had negatively impacted the company's value.
The settlement brings total recovery for the pension funds to more than $1 billion, Ohio's attorney general said.
In a filing with the Securities and Exchange Commission, AIG said it had entered into the settlement agreement, in which it would pay $175 million into an escrow account by this week. The remaining $550 million will be raised through stock offerings prior to court approval. The company said it could fund the remaining amount from "other sources" if necessary.
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