AIG Takes Over Lawsuit Against Greenberg and Smith
After a review by a special litigation committee, NY-based AIG decided to take over the case that initially stemmed from company shareholders against former Chairman and Chief Executive Officer Maurice R. Greenberg and former Chief Financial Officer Howard I. Smith for losses to AIG caused by their alleged wrongdoing. The suit seeks more than $1 billion in damages the former officers and stems from a series of shareholder derivative actions beginning in October 2004.
The committee “determined that it would be in the best interests of AIG and its shareholders for AIG to pursue these claims…rather than have them controlled by the plaintiffs bar,” AIG said in a statement. “Greenberg’s and Smith’s misconduct and wrongdoing…have had, and will continue to have, a series of deleterious effects on AIG,” the suit says.
Published on June 15, 2007
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