NU Online News Service, Aug. 14, 2:40 p.m. EDT

Three Ohio pension funds have reached a $115 million settlementagreement with Maurice Greenberg, former CEO of AmericanInternational Group (AIG), and three other company executivesregarding charges of "anti-competitive practices," Ohio AttorneyGeneral Richard Cordray announced.

However, AIG itself remains a defendant in the case, and Mr.Cordray made it clear he intends to vigorously pursue the civilaction, filed in the U.S. District Court in the Southern Districtof New York.

The agreement in principle must be approved by the boards of thepension funds at their August board meetings, Mr. Cordraynoted.

The pension funds–the Ohio Public Employees Retirement System,State Teachers Retirement System of Ohio, and Ohio Police and FirePension Fund–alleged that between Oct. 28, 1999 and April 1, 2005,AIG and its executives engaged in "anti-competitive practices, suchas market division through the use of undisclosed contingentcommissions and bid-rigging."

There were also allegations of a massive accounting fraud thatled to a $3.9 billion restatement of AIG's publicly availablefinancial and regulatory filings, according to Mr. Cordray'sstatement.

Mr. Cordray said he is now preparing the case for trial againstAIG itself, which he identified as the primary defendant.

"My office has negotiated agreements totaling $284.5 millionfrom secondary defendants in this case," Mr. Cordray said. "Yet AIGitself has so far refused to do right by investors who werewronged."

He characterized this as "completely unacceptable in light ofAIG's request to receive hundreds of millions of dollars in bonuscompensation, underwritten by taxpayers, due to a federal bailoutcaused by AIG's poor business decisions and the financial crises.Such misconduct simply underscores why my office will continue tohold Wall Street accountable for its wrongs."

A representative for AIG released a statement, which noted that"AIG has already paid $800 million to investors, including thosethat are part of the alleged class in this lawsuit–an amount whichis almost three-times what all the other defendants have agreed topay combined."

The company went on to say that "any additional payments fromAIG would not only come at the expense of taxpayers, but wouldgreatly benefit the plaintiffs' lawyers who are litigating theseclaims and who would undoubtedly seek millions in fees from anyjudgment or settlement."

Mr. Greenberg's representative declined to comment. The othersto settle include:

o Howard I. Smith, AIG's former CFO, who recently settledcharges filed by the Securities and Exchange Commission (SEC)involving accounting fraud.

o Christian M. Milton, AIG's former vice president ofreinsurance, who in January was sentenced to four years in prisonon charges of conspiracy, securities fraud, mail fraud and makingfalse statements to the SEC.

o Michael J. Castelli, AIG's former controller.

o Other related corporate entities–C.V. Starr & CompanyInc., and Starr International Company Inc.–which are now headed upby Mr. Greenberg.