Insurer American International Group will pay a $35 million penalty for violations related to former subsidiaries that solicited insurance business in New York without a license, the New York State Department of Financial Services said on Friday.

The department said in a statement that the former AIG units had also misrepresented those activities to regulators.

The dispute centered on American Life Insurance Co, better known as ALICO, and another former AIG unit known as DelAm. MetLife Inc, another insurer, bought both units from AIG in 2010.

In March, MetLife paid a $50 million fine to the department and $10 million to the Manhattan District Attorney’s office because of the subsidiaries’ activities.

In early April, AIG sued New York regulators to try to force them off enforcement proceedings over ALICO’s activities.

As part of Friday’s announcement, AIG will withdraw that suit, according to a consent order.

“AIG has agreed to resolve this dispute in order to avoid the distraction and expense of ongoing litigation,” the insurer said in a separate statement.