
AIG agreed to a settlement with the New York Attorney General and the federal government worth more than $1.6 billion to resolve allegations of fraud, bid-rigging and improper accounting. Of the total, $800 million was to go to investors deceived by false financial statements, $375 million to AIG policyholders harmed by bid rigging activities and $344 million to states harmed by aig's practices between 1986 and 1995 involving workers' compensation funds. In addition, New York imposed a $100 million penalty against the company. The SEC issued its own announcement about the $800 million portion of the settlement; For more info visit https://web.archive.org/web/20101111174444/http://www.ag.ny.gov/media_center/2006/feb/feb09a_06.html