The US-based insurance firm AIG is going to pay 725 million dollars to end the fraud case running against the firm for a long time. This will be one of the biggest settlements in the history of US.

The allegations against AIG include its involvement in manipulation of stock price, fraud with the accounting and anti competitive behavior in the time period of 1999 to 2005. Because of these frauds the investors lost their millions of funds.

The US court will approve this payment of 725 million dollars. After approval of the court, the first stage of payment worth 175 million dollars will be made with in some days of approval. After that the insurance giant has decided to arrange the rest 550 million dollars through issuing new shares.

Currently the US government owns 80% stake of the firm AIG as the firm was given a huge bailout by the government at the peak time of the economic crisis. According to the Attorney General of Ohio, the total payouts from AIG to the investor would pass the 1 billion dollar mark including total number of settlements.