AIG sues former CEO and directors
American International Group (AIG) is suing former CEO Maurice “Hank” Greenberg and six ex-directors and officers for breaching their fiduciary duty to the company.
The complaint, filed in the New York State Supreme Court, accuses Mr Greenberg, former CFO Howard Smith, Edward Matthews, Ernest Stempel, Michael Murphy, John Roberts and Houghton Freeman of misappropriating a special block of AIG shares worth US$20 billion ($22 million) in 2005, Reuters reports.
Both Mr Greenberg, 82, and Mr Stempel, 91, were listed as billionaires in last year’s Forbes rich list, with fortunes of $US2.8 billion ($3.05 billion) and $US1.7 billion ($1.85 billion) respectively.
The action relates to stocks acquired by Starr International, an AIG affiliate now controlled by Mr Greenberg, which is the insurer’s largest shareholder. [See ANALYSIS].
AIG says the defendants have a fiduciary duty to preserve, protect and use the stock to benefit AIG.
The complaint, filed in the New York State Supreme Court, accuses Mr Greenberg, former CFO Howard Smith, Edward Matthews, Ernest Stempel, Michael Murphy, John Roberts and Houghton Freeman of misappropriating a special block of AIG shares worth US$20 billion ($22 million) in 2005, Reuters reports.
Both Mr Greenberg, 82, and Mr Stempel, 91, were listed as billionaires in last year’s Forbes rich list, with fortunes of $US2.8 billion ($3.05 billion) and $US1.7 billion ($1.85 billion) respectively.
The action relates to stocks acquired by Starr International, an AIG affiliate now controlled by Mr Greenberg, which is the insurer’s largest shareholder. [See ANALYSIS].
AIG says the defendants have a fiduciary duty to preserve, protect and use the stock to benefit AIG.