The settlement stems from several class-action lawsuits claiming that AIG executives gave false and misleading information about the insurer's health, including its exposure to the risky home loans that triggered the mortgage crisis.
Last month, AIG and the plaintiffs accepted a mediator's proposal to settle the consolidated lawsuits for
The deal must still be approved by the court.
The settlement is the latest step by AIG to move beyond its troubled years following the financial crisis in 2008.
AIG also reported Monday that its net income jumped 13 percent in its second quarter, topping analysts' expectations.
In the April-June quarter, AIG's net income surged to
Earnings, adjusted for non-recurring items and to account for discontinued operations, came to
The latest results included a
The shares have risen 3.2 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 4.9 percent.
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