The financial crisis of the late aughts shook the foundations of our economic structure and left both corporations and citizens hoping for a brighter future. But as we begin to put the collapse behind us, the dust isn’t the only thing settling. On Aug 4 insurance giant AIG announced that it would settle a shareholder suit filed in 2008 for $960 million. The figure is one the largest amounts ever agreed to in addressing investor litigation.
The settlement will end several class action complaints filed by investors who allege that AIG intentionally misrepresented the health of the company in press releases and filings on the run up to their government-backed bail out. Investors say that AIG hid its sub-prime mortgage exposure, a move that eventually resulted in its near collapse.