Shareholders of American International Group Inc (NYSE:AIG) have won the approval of $970 million settlement, which resolved various claims that the company misled them about subprime mortgage exposure. As per the reports, this mortgage exposure led to a liquidity crisis that put on stake around $182.3 billion in federal bailouts.
Insights On The Matter:
The mortgage crisis took control over the entire world and forced a lot of companies to shut their operations immediately. Not only did small business get hit by this crisis, but some of the major players also felt the heat and closed down their operations. American International Group Inc (NYSE:AIG) was held responsible for this financial crisis along with a few other financial giants. There was a case filed against the company arguing its role in the financial crisis and the huge loss that the entire world had to deal with.
Laura Taylor, U.S. District Judge, settled this issue after attending a hearing in Manhattan. Experts call it one of the largest settlements related to 2008 financial crisis. As per the reports, the lawyers representing the plaintiff claimed that it was the largest and most sought after shareholder class settlement in which no regulatory actions were taken and criminals involved. The settlement had almost $970 million at stake, but an intelligent decision taken by Taylor made things look very easy.
A lot of businesses went insolvent, and the government had to bailout them after the financial crisis that hit the entire world during 2008-09. It’s been almost seven years since that liquidity crisis took place, but still the trails of it could be seen in United States as well as other countries. As the final settlement in AIG’s matter has been reached, the company can now focus on other important projects in the pipeline. Reporters tried to get in touch with AIG representatives, but nobody came ahead and spoke about this decision.