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AIG sues former CEO
The insurance giant accuses former chief 'Hank' Greenberg and 6 others of misappropriating $20 billion of AIG shares.
The world’s largest insurer by asset is suing its CEO and 6 other executives. AIG is suing the man that ran their company for 38 years, Hank Greenberg, and also the former CFO and other executives at the company for what they say was misappropriation of 20 billion dollars worth of AIG stock. Here is a look at where AIG is, up a little bit today but still well off the highs it’s seen over the past year.
I want to get into exactly what this means, give you some context cause' it is a bit confusing. This case was filed in New York Supreme Court on Wednesday. Now what it says is that Hank Greenberg, also CFO, former CFO, Howard Smith, took over company stock held by AIG affiliate Starr International back in 2005. Starr International is the largest shareholder in AIG, AIG claims the defendants put themselves on Starr's board, converted the Starr into a private investment vehicle.
Now this just escalates a legal conflict that has been brewing between AIG and Hank Greenberg for quite some time. Remember back in March of 05, Greenberg was forced to step down from AIG, two months later, uh, then New York State Attorney General Eliot Spitzer sued Greenberg accusing him of ordering improper transactions as a means to hide losses and also inflate reserves.
That case is still pending, but again, this comes as just another hit for the man that ran AIG for 38 years. The complaint, it seeks to prevent Greenberg and also the former CFO, Howard Smith and other executives from selling AIG stock.
Notes:
Brew: To be imminent; impend
