AIG: 6 independent directors to stand for election

A federal court has approved distributing $843 million to investors in American International Group Inc., the Securities and Exchange Commission said.

The distribution was ordered after the SEC alleged accounting fraud at AIG, saying the insurance giant falsified finance statements from at least 2000 until 2005. A federal judge authorized a fund to help compensate investors in June 2007. The money includes $700 million in AIG profits from the period and an additional $100 million in penalties.

AIG consented to a 2006 judgment in the case without admitting or denying the allegations.

The SEC said it would mail checks to more than 257,000 AIG investors within the next few months.

In other news, AIG said it would reconfigure its board to include six new independent directors. Six new nominees will be up for election at the New York company’s annual meeting June 30. AIG’s website lists nine current board directors, including Ed Liddy, the company’s chairman and chief executive.

It wasn’t immediately known if any current directors are up for reelection. The company’s full slate of board nominees will be disclosed in the company’s forthcoming proxy statement, AIG spokeswoman Christina Pretto said.