AIG settles legal disputes
US insurer AIG has reached agreement about its legal disputes with four claimants, including two former employees.
The insurer announced it had entered into an agreement to “settle all disputes” between AIG and its former chairman Maurice Greenberg, former chief financial officer Howard Smith and privately held company CV Starr and Starr International Company (which it was suing over AIG stock).
As a result of the resolution, the parties will be released from all claims against each other. AIG said this will include any claims by Greenberg and Smith “for indemnification of future legal fees and expenses or settlement costs”.
An independent third party is being called on to assess the former employees’ claims “for past legal fees and expenses for a determination of which those fees (up to a $150 million cap) AIG is legally obligated to pay under AIG’s charter and by-laws and Delaware law”.
AIG’s chief executive Robert Benmosche said the company was pleased about the agreement.
“The resolution of these long-running disputes will remove a significant distraction and expense and allow AIG to better focus its efforts on paying back taxpayers and restoring the value of our franchise for the benefit of all our stakeholders,” he said.
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