AIG Asks Judge to Deny Greenberg Access to Legal Files

On Friday, American International Group Inc. has asked a New York judge to temporarily block former CEO Maurice R. Greenberg’s access to AIG legal documents, arguing that none of the documents relates to Mr. Greenberg’s defense against civil fraud charges filed against him by the New York attorney general.

Published on February 25, 2008

An intermediate New York appeals court ruled earlier this week that AIG must give Mr. Greenberg and former AIG Chief Financial Officer Howard I. Smith access to legal memoranda prepared before they left the insurer in 2005.

The two men contend they need the documents to argue that they relied on the advice of counsel in carrying out transactions that the attorney general’s civil complaint charges were fraudulent. Those transactions include a 2000 loss portfolio reinsurance deal with General Re Corp. that is at the center of a criminal trial in Hartford, CT., against four former Gen Re officials and a former AIG reinsurance vice president

On Friday, AIG asked a New York judge to stay the appellate panel’s decision pending further appeal, contending that there would be no prejudice to Messrs. Greenberg and Smith if the stay is granted but there would be irreparable harm to AIG if it is not.