AIG investors' US$970.5m settlement wins approva

[NEW YORK] American International Group Inc shareholders won approval on Friday of a US$970.5 million settlement resolving claims that they were misled about its subprime mortgage exposure, leading to a liquidity crisis and US$182.3 billion in federal bailouts.

US District Judge Laura Taylor Swain in Manhattan granted final approval at a hearing to what lawyers for the investors call one of the largest class action settlements to come out of the 2008 financial crisis.

It marks the largest shareholder class action settlement in a case where no criminal or regulatory enforcement actions were ever pursued, the plaintiffs' lawyers have said.

REUTERS