AIG to pay nearly $1B to settle class-action suit

• AIG (NYSE:AIG) shareholders won approval on Friday for a $970.5M settlement of claims they were misled about its subprime mortgage exposure.
• AIG says it is pleased with the ruling.
• Investors accused AIG of failing to disclose the risks it took on through its credit default swaps and securities lending programs, which led investors to buy stock and debt they otherwise would not have bought.
• The settlement covers investors who bought AIG securities between March 16, 2006, and Sept. 16, 2008, when the company received its first bailout. The court overruled an objection by two people who bought shares before that period who said they should be included in the suit.