Looking to put an end to years of antagonism, New York-based American International Group Inc. (AIG), its former chairman and CEO Maurice Greenberg, and its former CFO Howard Smith have agreed to enter binding arbitration to dissolve their sundry legal disputes.
In a joint public statement, the parties said it was “preferable to resolve as many of their disputes as possible in a private setting, and in a more expeditious and cost-effective manner.”
The news comes on the heels of a federal judge upholding a July jury ruling in favor of Greenberg, who stepped down as AIG CEO in 2005 amidst an accounting scandal. The jury ruled that Greenberg did not wrongly transfer $4.3 billion in AIG stock to his closely held concern, New York-based Starr International Co., upon being ousted from AIG.
Separately, in August, Greenberg agreed to pay $15 million and Smith agreed
to pay $1.5 million to settle with the Securities and Exchange Commission,
which charged that Greenberg was a "control person" under Section 20(a) of
the Exchange Act.
The arbitration sessions are scheduled to begin October 15, 2009, and will conclude by March 31, 2010.
The rapprochement with Greenberg also comes a week after new AIG CEO Robert Benmosche told Reuters he would seek Greenberg’s counsel as he looks to put the insurance behemoth back on track.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access