AIG agrees to $960M settlement in lawsuit over allegedly misleading investors On July 15, the parties accepted a mediatorís proposal to settle the Consolidated 2008 Securities Litigation for a cash payment by AIG of $960M. As part of the mediator's proposal accepted by the parties, the parties have also agreed that the mediator will retain authority to resolve any disputes, if they arise, with respect to the finalization of the settlement documentation. The settlement remains subject to completion of definitive settlement documentation, notice to the class, and approval by the Court. The settlement amount has been accrued. Comments taken from a company filing.