It appears that efforts to settle the long-running fraud lawsuit against American International Group Inc.’s former chief, Maurice “Hank” Greenberg, are totally off track. Before AIG’s near collapse in mid-September, which led to a federal bailout, the parties had reached a tentative settlement. When AIG dropped from $30 per share to as low as $1 per share, the settlement fell apart.
The lawsuit was brought by former New York Attorney General Eliot Spitzer as part of an accounting probe of AIG that led to Greenberg leaving the company in 2005. AIG reached a $1.64 billion settlement with authorities in 2006. Much of Greenberg’s wealth is tied up in AIG stock through personal holdings, a family trust and companies he controls. The U.S. government now owns nearly 80% of AIG as the result of its $85 billion “bailout” of the insurance holding company in September. A revised plan boosted the amount of aid to AIG to as much as $150 billion. Greenberg, now chairman and CEO of C.V. Starr & Co Inc., has publicly criticized the AIG management and board of directors that followed him for the insurance giant’s problems. It now appears the case will proceed toward a trial in New York Supreme Court.
Source: Insurance Journal
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.