Bloomberg Businessweek reported on August 27, 2010 that AIG’s insurers agreed to a settlement of $90 million for claims that the former top executive Hank Greenberg deceived investors. Insurers covering AIG managers agreed to resolve claims that Greenberg and other executives used accounting tricks and fraudulent schemes to hide problems, according to the filing yesterday in Delaware Chancery Court in Wilmington. The money is being paid to AIG and not investors, and another $60 million is going to Greenberg and other defendants to reimburse legal fees, the filing shows.
The settlement in the case, a so-called derivatives suit filed by investors against executives and directors on behalf of the company, comes a month after AIG separately agreed to pay $725 million to investors who lost money amid the company’s share decline. AIG accepted a U.S. government bailout in September 2008 that has swelled to $182.3 billion.
