The settlement must be agreed to by the boards of the Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio, the Ohio Police and Fire Pension Fund and ultimately the U.S. District Court in New York, Cordray’s office said.
The lawsuit against AIG, its executives and related companies involve charges of anti-competitive practices, including bid-ridding and accounting fraud. The three pension funds are the lead plaintiffs in the class action lawsuit on behalf of investors who claim they were wronged by AIG and the others, Cordray’s office said.
Other defendants involved in the settlement included: former AIG executives Howard I. Smith, Christian M. Milton and Michael J. Castelli, C.V. Starr & Co., Inc. and Starr International Co., Inc., the press release said.
The case started in 2004. Cordray said he now will focus on preparing for trial against the primary defendant, AIG.
There previously were two other multimillion dollar agreements negotiated in the case.
There was a $97.5 million settlement with PricewaterhouseCoopersLLP and a $72 million settlement with General Reinsurance Corporation, the press release said.
Cordray faulted AIG.
“... AIG itself has so far refused to do right by investors who were wronged,” he said in the release.
“This is completely unacceptable in light of AIG’s request to receive hundred of millions of dollars in bonus compensation, underwritten by taxpayers due to a federal bailout cause by AIG’s poor business decisions and the financial crises.”
Cordray has said total losses to all investors in the class action suit, including the pension funds, could reach billions of dollars. The lawsuit seeks damages from investors who bought AIG securities between Oct. 28, 1999 and April 1, 2005, the release said.
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