Insurer must pay shareholders over false statements
AIG will have to pay $843m to 257,000 investors harmed by its misleading accounting statement the Securities and Exchange Commission has said.
The funds were set aside after the insurer settled allegations that it had falsified its financial statements between 2000 and 2005 through a variety of sham transactions and entities.
AIG consented to a federal court judgment in the case in February 2006 and agreed to pay $800m into a fund for investors that would be administered by the SEC. The insurer did not admit or deny the allegations.
The distribution of cheques to investors follows an effort by the SEC to identify those investors who were directly harmed by the AIG’s misstatements.