In one of the latest corporate governance scandals to hit the US, troubled insurer American International Group has cut its net income for 2004 by 11.9% as a result of restatements to its results for the previous four financial years.

Link: AIG admits £2.7bn accounts blunder

AIG filed its 2004 accounts and outlined the results of its review of prior year results today (31 May). The review followed the departure of long-time chairman and CEO Maurice Greenberg in March, and regulatory action from New York Attorney General Eliot Spitzer, who sued the company this month alleging financial manipulation to deceive investors.

Auditor PricewaterhouseCoopers and two law firms conducted the company's financial review, which led to changes in net income and shareholders' equity figures.

AIG CEO Martin Sullivan said today: 'AIG continues to co-operate with all ongoing government and regulatory investigations. The company is embarking on a new era, marked by changes in the way we operate, including greater responsiveness and transparency.'