AIG resolves all legal disputes with ex-chairman Greenberg

November 26, 2009

NEW YORK - American International Group Inc. has agreed to settle all disputes with its former chairman, Maurice "Hank" Greenberg, the company said late Wednesday. The insurance company, which was bailed out by the government and is now owned by U.S. taxpayers, also resolved its complaints against former Chief Financial Officer Howard I. Smith. AIG said it will pay up to $150 million in past legal fees and expenses for both Greenberg and Smith. The agreement calls for the reimbursements to be reviewed by a third party. Under the terms of the agreement, AIG will also return a Persian rug from the company's headquarters to Greenberg, as well as photographs of Greenberg with Chinese leaders in AIG's Shanghai building. Greenberg will also have access to AIG's archives to write his memoirs. Greenberg was ousted from New York-based AIG amid an accounting scandal in 2005. Mark Herr, an AIG spokesman, said the legal costs that AIG reimburses Greenberg and Smith may be covered at least partially by insurance.

- Associated Press


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