The scuffle surrounding a chunk of American International Group Inc. (AIG) stock is scheduled for trial in a New York federal court on March 2, A.M. Best reported today. The trial is the latest manifestation of the ill will between AIG and its former chairman and CEO Maurice “Hank” Greenberg, now chairman and CEO of Starr International Co.
The battle began shortly after Greenberg left AIG in 2005. Starr initially sued AIG to regain artwork it claimed to own, but was being held by AIG, which prompted the insurer to counter-sue over control of the stock.
Starr, which had been controlled by AIG during Greenberg’s reign, held the stock in what AIG claimed was a trust primarily designed to fund executive compensation plans, the story says. AIG then asserted that Greenberg engineered a takeover of the Starr board, and violated Starr’s fiduciary responsibility for the trust, whereas Starr maintains that it owns the stock and AIG has no claim to it.
In court documents, AIG said Starr has been using the stock to fund capital acquisitions, establish a charitable foundation and “in the most disloyal act of all … has entered into insurance businesses in competition with AIG.”
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