Shareholders of American International Group have won approval of a $970.5 million settlement resolving claims that they were misled about its subprime mortgage exposure, leading to a liquidity crisis and $182.3 billion in federal bailouts, The New York Times reported on Saturday. Hon. Laura Taylor Swain granted final approval on Friday for what lawyers for the investors called one of the largest class-action settlements to come out of the 2008 financial crisis. It is the largest shareholder class-action settlement in a case in which no criminal or regulatory enforcement actions were ever pursued. AIG said that it was pleased with the judge’s order. The Justice Department and the Securities and Exchange Commission closed related investigations involving AIG in 2010.
