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SMALL BUSINESS
AIG resolves all legal disputes with Greenberg
By CANDICE CHOI
, AP
NEW YORK -American International Group Inc. has agreed to settle all legal disputes with its former chairman Maurice "Hank" Greenberg, the company said late Wednesday.
The insurance company, which was bailed out by the government and is now owned by U.S. taxpayers, also resolved its complaints against former Chief Financial Officer Howard I. Smith. AIG said it will pay up to $150 million in past legal fees and expenses for both Greenberg and Smith. The agreement calls for the reimbursements to be reviewed by a third party.
Under the terms of the agreement, AIG will also return a Persian rug from the company's headquarters to Greenberg, as well as photographs of Greenberg with Chinese leaders in AIG's Shanghai building. Greenberg will also have access to AIG's archives to write his memoirs.
AIG had argued that a Greenberg-controlled investment firm owed it $4.3 billion to cover stock taken from an executive retirement fund. AIG claimed the fund was held in an oral trust for use by company employees. Greenberg argued he could sell the shares because they were controlled by his firm, Starr International.
AIG had also claimed that Greenberg and Smith owe part of the $1.6 billion the insurer paid to settle a range of issues with regulators including the Securities and Exchange Commission, Justice Department and New York Attorney General.
Greenberg was ousted from New York-based AIG amid an accounting scandal in 2005. The Securities and Exchange Commission charged both Greenberg and Smith with misstating the company's earnings.
AIG had agreed earlier this year to settle its disputes with Greenberg and Smith through arbitration. Around the same time in August, a judge had ruled that Starr International did not improperly seize the AIG stock from the retirement plan.
Mark Herr, an AIG spokesman, said the legal costs AIG reimburses Greenberg and Smith may be covered at least partially by insurance.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-11-25 18:08:37
COMMENTS ( 7 )
The RepubliCvnts complaints about how we're managing the Afghanistan and Pakistan situation, but they're the ones who started it, created it, and left it UN-WON!!!
The RepubliCvnts are crying for victories to win their wars to which they have created and left UN-WON in Afghanistan and Pakistan, but they're biatching and campaigning to not wanting to pay for it!!!
The RepubliCvnts are crying for victories to win their wars to which they have created and left UN-WON in Afghanistan and Pakistan, but they're biatching and campaigning to block of sending more troops!!!
The RepubliCvnts are complaining and biatching about the increasing wild inferno of UNEMPLOYMENTS they have created to begin with, but they're out there campaigning and demanding to their RepubliCvnt Companies and affiliates to stop and to prevent of hiring.
The RepubliCvnts are complaining about the $12-Trillion deficit, but they're the ones who created it to begin with, and the ones who first distributed TRILLION$$$ to Wall Street, Giant CORRUPTED Banks, Giant CORRUPTED Insurance Companies; and CEO's big giant BONUSES!!!
And the first ones running to the FED with their hands-out begging to be bailed!!!
The RepubliCvnts are like individuals wanting to go to heaven, but refuses to do what it takes to get there!!! FVCKING RepubliCvnt SCVMS!!!!
1... We being aig are now paying greenbergs 150 million dollar legal fees.
2.... These are the people we are trying to not let go to our competion
3....I think the government needs to audit the idiots in congress who are making these statement.
4....Oh wait , those are the idiots who haven't a clue as to what is going on
5.... Guess what joe the plumber you are screwed..