American International Group (AIG) is expected to pay more than $US1 billion to settle civil investigations by federal and state authorities into its financial reporting woes.

The Wall Street Journal reported that the payment would put an end to the company’s civil suit filed by New York Attorney-General Eliot Spitzer, but it won’t include a deal to get its former Chairman and CEO Hank Greenberg off its back.

Mr Greenberg’s legal team is trying to get access to internal documents and a report held by Mr Spitzer’s office.

One of his legal representatives says the documents were used in the board’s decision to oust him, and “we have many reasons to believe there was collusion between [Mr Spitzer’s] office and AIG to blame Mr Greenberg and other executives for actions at AIG and to justify the company’s decision to force Mr Greenberg’s retirement”.