8-KOther Events

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Corporate Update (Nov 30, 2004)

Filed November 30, 2004For Securities:AIG

Summary

On November 30, 2004, American International Group, Inc. (AIG) announced a final settlement with the Securities and Exchange Commission (SEC), the U.S. Department of Justice (DOJ), and the U.S. Attorney for the Southern District of Indiana. This settlement resolves all government claims related to certain transactions with Brightpoint, Inc. and The PNC Financial Services Group, Inc. (PNC), as well as related matters. Notably, AIG did not admit or deny any wrongdoing in the SEC agreement, which will fully resolve these government claims against AIG and its subsidiaries. The financial implications for AIG include a payment of approximately $46 million in fees and interest to an SEC disgorgement fund related to the PNC transactions. Additionally, AIG Financial Products Corp. (AIGFP) will pay an $80 million penalty to the DOJ. The company has also agreed to certain undertakings, including an injunction against future violations of federal securities laws and the appointment of an independent consultant to review specific transactions from 2000-2004. AIG is also required to establish a transaction review committee, with its policies and procedures to be reviewed by the independent consultant.

Key Highlights

  • 1AIG reached a final settlement with the SEC, DOJ, and U.S. Attorney for the Southern District of Indiana.
  • 2The settlement resolves all government claims concerning transactions with Brightpoint, Inc. and The PNC Financial Services Group, Inc. (PNC).
  • 3AIG did not admit or deny wrongdoing in the SEC agreement.
  • 4AIG will pay approximately $46 million in fees and interest to an SEC disgorgement fund for the PNC transactions.
  • 5AIG Financial Products Corp. (AIGFP) will pay an $80 million penalty to the DOJ.
  • 6AIG is enjoined from future violations of certain federal securities laws.
  • 7An independent consultant will review certain AIG transactions (2000-2004) and the company's transaction review committee.

Frequently Asked Questions

This 8-K filing announces that AIG has reached a final settlement with the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the U.S. Attorney for the Southern District of Indiana. This settlement resolves outstanding government claims related to specific past transactions involving Brightpoint and PNC Financial Services, and related public statements.

No, in the agreement with the SEC, AIG did not admit or deny any wrongdoing. The settlement is designed to fully resolve all government claims against AIG and its subsidiaries concerning the transactions in question.

AIG will pay approximately $46 million in fees and interest to an SEC disgorgement fund related to the PNC transactions. Additionally, its subsidiary, AIG Financial Products Corp. (AIGFP), will pay an $80 million penalty to the DOJ.

As part of the settlement, AIG is enjoined from future violations of certain federal securities laws. The company is also required to appoint an independent consultant to review specific transactions conducted between 2000 and 2004 and to establish a transaction review committee, whose policies and procedures will also be reviewed by the consultant.