Tags: AIG

New York federal judge has cleared a way for Pacific Investment Management Co. to pursue lawsuit against AIG in California. Meanwhile, Pimco also faced another legal battle with former co-founder Bill Gross.

The three AIG units that were involved in practicing confllict of interest towards its clients are asked to pay $9.5 million. These units have drove their clients into purchasing expensive mutual fund shares in order to collect more fees.

AIG said that it had decided to settle its $2 billion lawsuit. It will allegedly resolve the accusations of Coventry First that it overcharged the life insurance policies acquired from elderly people.