AIG agrees to pay injured NC man $18 million

RALEIGH — American International Group has agreed to pay a disabled man $18 million in one of the largest lawsuit settlements in North Carolina.

AIG is the insurance giant rescued by $85 billion in federal loans last month. Lawyers said they were eager to settle the case in part because of the company’s financial picture.

In May, A judge ordered the company to pay $75 million to accident victim Mark Pellegrin’s father after an AIG subsidiary failed to send anyone to defend the case in Wake Superior Court.

The News & Observer of Raleigh reported Sunday that such settlements rarely become public, but the details were discussed earlier this month in an open federal court session attended by a reporter for the newspaper.

(Copyright 2008 by The Associated Press. All Rights Reserved.)