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Ohio Attorney General Rich Cordray has struck a $725 million settlement with American International Group to resolve charges of bid-rigging, accounting fraud and other practices that officials said led investors nationwide to lose millions.

New York-based AIG through the settlement has agreed to put up $175 million upon preliminary court approval of the deal. According to information from Cordray's office, the company plans to fund the remaining $550 million of the settlement through stock offerings.

At the center of the settlement are a range of fraud allegations over the company’s conduct from October 1999 through April 2005. The Ohio Public Employees Retirement System, State Teachers Retirement System and state Police and Fire Pension Fund served as lead plaintiffs in the national class-action suit, roots of which stretch back to the tenure of former Attorney General Jim Petro paperless payday loans.

The former AG sued AIG in 2004 after New York officials probed charges of bid-rigging among the firm and other insurers.

That probe uncovered new charges and led to the ouster of Hank Greenberg, AIG’s longtime CEO and a case against a reinsurer tied to AIG, General Reinsurance Corp. Four former General Reinsurance executives and a former AIG executive have since been convicted of conspiracy and fraud charges tied to a deal that allegedly helped AIG inflate its loss reserves.

A number of parties tied to AIG, including Greenberg, have struck settlements with Ohio totaling $284.5 million since the litigation began.

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