A recent New York Law Journal story, “U.S. Judge Approves $115M Settlement in AIG Class Action,” reports that a federal judge in Manhattan yesterday approved a $115 million settlement reached by former American International Group Inc. CEO Maurice “Hank” Greenberg and other former AIG executives to resolve a shareholder class action. 

Southern District Judge Deborah Batts ruled from the bench in In re American International Group Securities Litigation, that the settlement was “fair, reasonable and adequate,” overruling the sole objection by an investor, which did not appear in court.

Batts also approved awarding 13.25 percent of the settlement, or $15.24 million, as attorney fee to plaintiffs’ lawyers led by the law firms Labaton Sucharow and Hahn Loeser & Parks.

The underlying case was brought by three Ohio public employee retirement funds, alleged that AIG misled investors with sham accounting.  When the company eventually had to restate several years of finances in 2005, investors lost money.  Greenberg left shortly thereafter.