A recent Reuters story, “AIG Investors’ $970.5 Million Settlement Wins U.S. Court Approval,” reports that American International Group Inc shareholders won approval of a $970.5 million settlement resolving claims they were misled about its subprime mortgage exposure, leading to a liquidity crisis and $182.3 billion in federal bailouts.

U.S. District Judge Laura Taylor Swain in Manhattan granted final approval at a hearing to what lawyers for the investors call one of the largest class action settlements to come out of the 2008 financial crisis. It marks the largest shareholder class action settlement in a case where no criminal or regulatory enforcement action were pursued, the plaintiffs’ lawyers said. For the plaintiffs’ work on the case Swain awarded the law firms Barrack Rodos & Bacine and The Miller Law Firm $116.46 million in attorney fees and more than $4 million in expenses.

Swain noted that no potential class member had objected to the terms of the deal, which she said was strong evidence that is was “fair, reasonable and adequate” and should be approved. She added that the amount was “very substantial” and that shareholders would face significant risk if they continued to litigate instead of settling.

The case is In re: American International Group Inc. 2008 Securities Litigation, U.S. District Court for the Southern District of New York, No. 08-04772. For more on this settlement, visit http://www.aig2008securitiessettlement.com/