Greenberg settles lawsuit with AIG
Four former AIG executives, including legendary former CEO Maurice “Hank” Greenberg, have agreed to settle a shareholder lawsuit for $US115 million ($143 million).
The settlement has been reached just days before the trial was to begin in a lawsuit challenging hundreds of millions of dollars in commissions paid by AIG to subsidiary company CV Starr and Co, which is run by Mr Greenberg and other former AIG directors.
The lawsuit came about in 2002 after the Teachers Retirement System of Louisiana filed a complaint that executives and directors had breached their fiduciary duties by directing business to CV Starr, arguing the business should have gone directly to AIG.
The settlement has been reached just days before the trial was to begin in a lawsuit challenging hundreds of millions of dollars in commissions paid by AIG to subsidiary company CV Starr and Co, which is run by Mr Greenberg and other former AIG directors.
The lawsuit came about in 2002 after the Teachers Retirement System of Louisiana filed a complaint that executives and directors had breached their fiduciary duties by directing business to CV Starr, arguing the business should have gone directly to AIG.