AIG to pay $9 million to settle fraud claim on behalf of Ohio cities, universities
By APWednesday, April 7, 2010
AIG pays $9 million to settle Ohio fraud claim
COLUMBUS, Ohio — American International Group Inc. has agreed to pay $9 million to settle fraud claims filed on behalf of Ohio cities, schools and universities.
State Attorney General Richard Cordray accused the insurance company of conspiring with others to eliminate competition in the commercial casualty market by providing customers with fictitious quotes — creating the false impression that competitive bidding produced the best possible price from 2001 to 2004.
Cordray said Wednesday the alleged scheme caused premiums to rise and cost Ohio public schools, universities and pension funds millions of dollars.
AIG denies wrongdoing.
Three previous settlements with secondary defendants in the state’s securities fraud case have totaled $284.5 million.
