American International Group Inc. and Brookfield Asset Management Inc. agreed to end a 2009 lawsuit in which Brookfield sought a judge’s ruling that the insurer’s collapse triggered default provisions in interest-rate swaps, Bloomberg News reported yesterday. Brookfield sued in federal court in Manhattan, alleging that New York-based AIG and its Financial Products unit “refused to concede the occurrence” of a default even though AIG got a $182.3 billion bailout package from the U.S. government. Brookfield, based in Toronto, and its Brysons International Ltd. unit, which joined in the suit as a plaintiff, sought a declaration from a federal judge that the insurer’s collapse triggered default provisions in two interest-rate swaps. AIG had said that Brookfield, based in Toronto, had attempted to evade a $1.5 billion debt.
