Aon's (AON) US investment subsidiary agreed to pay $15 million to settle a class-action lawsuit claiming that calculation mistakes and risky investment advice caused Pennsylvania public school teachers to make extra contributions to their pension fund, Bloomberg reported Wednesday, citing a federal court filing in Philadelphia.

The teachers alleged that Aon Investments USA recommended investments in high-fee hedge funds, which resulted in considerable losses, and relied on other financial advisers to compute returns or disclose excessive fees, the report said.

The settlement still requires court approval, Bloomberg reported, citing a lawyer for the plaintiffs.

Aon did not immediately respond to a request for comment from MT Newswires.

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