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AIG Settles for $725 Million

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Posted on Jul 16, 2010
AP / Mark Lennihan

AIG’s New York office building.

American International Group, 80 percent owned by the U.S. government, has announced it will pay out $725 million in a settlement of a securities fraud lawsuit, begun in 2004, that accused the insurance Gargantua of accounting fraud and stock manipulation. —JCL

Reuters:

American International Group Inc agreed to pay $725 million to settle a long-running securities fraud lawsuit led by three Ohio public pension funds, in one of the largest class action settlements in U.S. history.

AIG, which is nearly 80 percent owned by the U.S. government, would pay $175 million within 10 days of preliminary court approval of the settlement with a class of AIG shareholders.

The company may fund the remaining $550 million through a stock offering or other means, including cash, when it decides it is commercially reasonable to make such an offering.

The litigation, which began in October 2004, involved allegations that AIG engaged in accounting fraud, bid-rigging and stock price manipulation, said Ohio Attorney General Richard Cordray, who represented the Ohio funds.

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By samosamo, July 18, 2010 at 9:10 pm Link to this comment

****************


Bailed out at $180,000,000,000.00 and now having to pay out
$725,000,000.00. I’ll take that deal any day. Hell
$725,000,000.00 ain’t even the tax on $180,000,000,000.00
except in the corrupt financiers world. We are truly a nation of
fools, very gullible fools.

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kerryrose's avatar

By kerryrose, July 17, 2010 at 6:48 am Link to this comment

So our government is engaged in illegal financial practices at the expense of people’s pensions?  That means the government is gambling and using OUR money illegally.  The government has no money of its own.

I had AIG health insurance after graduating from college, they initially denied my application because at 5’2-1/2 and 104 lbs. they said I was too skinny.  My doctor interfered and complained.  I eventually got the insurance.

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RAE's avatar

By RAE, July 17, 2010 at 5:29 am Link to this comment

“The company may fund the remaining $550 million through a stock offering or other means, including cash, when it decides it is commercially reasonable to make such an offering.”

What a friggin’ joke! Good luck, pension funds, in EVER seeing that money.

It is this kind of financial sleight-of-hand, smoke-and-mirrors, CONTINUING FRAUD that is exasperating even the dullest of our citizenry.

That the US Government is involved, let alone being the majority owner of such a collosal con, is an outrage of monumental proportions.

And what can we, the citizens, do about it?

ABSOLUTELY NOTHING. Except pay and pay and pay.

Quite OK for our “authorities” to lie to us, rip us off in every way possible, and to do so with impunity. But just let you or I TRY to lie to them or rip them off… and into the slammer we go.

And they wonder why the masses go ballistic every once in a while. I sense another revolution not that far in the future.

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