AIG sues Hank Greenberg
American International Group (AIG), has sued former CEO Maurice “Hank” Greenberg and former CFO Howard Smith in a case seeking more than $US1 billion ($1.18 billion) in damages.
AIG is taking on the lawsuit, which was initiated by AIG shareholders.
“After an in-depth review, the special litigation committee of AIG’s board of directors determined that it would be in the best interests of AIG and its shareholders for AIG to pursue these claims against Messrs Greenberg and Smith, rather than have them controlled by the plaintiffs bar,” the insurer says in a statement.
It says the two executives caused AIG to be exposed to liability for violations of federal securities laws and potential criminal liability.
The original actions began in 2004 after former New York Attorney-General Eliot Spitzer accused AIG and Greenberg of entering into sham reinsurance transactions.
AIG will also sue for its continuing legal costs. It says it incurred the costs of an internal investigation, an $US800 million ($948 million) settlement with the Securities and Exchange Commission, a $US25 million ($30 million) settlement with the US Justice Department and a $US100 million ($118 million) fine to the state of New York.
AIG is taking on the lawsuit, which was initiated by AIG shareholders.
“After an in-depth review, the special litigation committee of AIG’s board of directors determined that it would be in the best interests of AIG and its shareholders for AIG to pursue these claims against Messrs Greenberg and Smith, rather than have them controlled by the plaintiffs bar,” the insurer says in a statement.
It says the two executives caused AIG to be exposed to liability for violations of federal securities laws and potential criminal liability.
The original actions began in 2004 after former New York Attorney-General Eliot Spitzer accused AIG and Greenberg of entering into sham reinsurance transactions.
AIG will also sue for its continuing legal costs. It says it incurred the costs of an internal investigation, an $US800 million ($948 million) settlement with the Securities and Exchange Commission, a $US25 million ($30 million) settlement with the US Justice Department and a $US100 million ($118 million) fine to the state of New York.