AIG settles legal battle with Hank Greenberg

The former chairman and the insurance giant release each other from future legal fees and agree to submit past claims to a third party.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Hibah Yousuf, staff reporter

Bailout tracker
Follow the money: Bailout tracker
The government is engaged in a far-reaching - and expensive - effort to rescue the economy. Here's how you can keep tabs on the bailouts. More
What are you doing this Thanksgiving weekend?
  • Staying home and doing little
  • Shopping for holiday bargains
  • Traveling
  • Working

NEW YORK ( -- AIG said Wednesday it agreed to settle long-standing legal disputes with the insurance giant's former chairman, Maurice "Hank" Greenberg.

The parties have agreed to release each other from all claims, including those by Greenberg against AIG (AIG, Fortune 500) for payments of future legal fees and expenses or settlement costs, according to a Securities and Exchange Commission filing by AIG.

The settlement also gives Greenberg photographs of himself with notable figures, including one with Chinese leaders that is in AIG's Shanghai office.

Greenberg will also get a Persian rug that was previously in a board room of AIG's Pine Street office in New York.

AIG will also allow Greenberg access to archived material to write his memoir.

The deal also covers former AIG chief financial officer Howard Smith, as well as Greenberg's privately-held companies, C.V. Starr & Co. and Starr International Company Inc.

The two sides also agreed to submit Greenberg and Smith's past claims for AIG's payment of legal fees and expenses to a third party, Layn Phillips of Los Angeles-based law firm Irell & Manella, to determine how much AIG is legally obligated to pay. The amount is capped at $150 million.

"We are pleased that we have resolved our differences," said AIG's chief executive office Robert Benmosche in a statement. "The resolution of these long-running disputes will remove a significant distraction and expense and allow AIG to better focus its efforts on paying back taxpayers and restoring the value of our franchise for the benefit of all our stakeholders."

Greenberg and Smith agreed that they are satisfied the long-standing disputes have been resolved, according to the filing.

"I too am pleased that these long-running disputes are now over, and I want to express my appreciation for Bob Benmosche's help, and the help of the AIG Board, in resolving them." Greenberg said. "I look forward to assisting AIG in trying to preserve and restore as much value as possible for all of AIG's stakeholders."

Greenberg, 83, was ousted from his post as AIG's chief executive in 2005 amid a probe by then-New York Attorney General Eliot Spitzer for accounting fraud.

The following year, the SEC charged AIG with securities fraud and improper accounting. The company settled the charges by repaying $700 million plus a fine of $100 million. In August, Greenberg agreed to pay $15 million. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.