Agreement between parties ends
NEW YORK--(BUSINESS WIRE)--Nov. 25, 2009--
American International Group, Inc. (AIG), its former Chairman Maurice R.
“Hank” Greenberg, its former Chief Financial Officer Howard I. Smith,
C.V. Starr & Company, Inc. (“C.V. Starr”), and Starr International
Company, Inc. (“SICO”) announced today that they have entered into an
agreement to settle all disputes between AIG, on the one hand, and
Greenberg, Smith, C.V. Starr and SICO, on the other.
Under the terms of the settlement, the parties have agreed to release
each other from all claims, including any claims by Greenberg and Smith
against AIG for indemnification of future legal fees and expenses or
settlement costs. The parties have further agreed to submit to an
independent third party Greenberg’s and Smith’s claims for past legal
fees and expenses for a determination of which of those fees (up to a
$150 million cap) AIG is legally obligated to pay under AIG’s charter
and by-laws and Delaware law.
“We are pleased that we have resolved our differences” said Robert
Benmosche, AIG’s chief executive officer. “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
“I too am pleased that these long-running disputes are now over, and I
want to express my appreciation for Bob Benmosche’s help, and the help
of the AIG Board, in resolving them. I look forward to assisting AIG in
trying to preserve and restore as much value as possible for all of
AIG’s stakeholders,” said Mr. Greenberg. Mr. Smith concurs with Mr.
The details of the settlement are set forth in the November 25, 2009
Memorandum of Understanding attached to AIG’s Form 8-K filing dated
November 25, 2009.
American International Group, Inc. (AIG), a world leader in insurance
and financial services, is the leading international insurance
organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG's common
stock is listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
Source: American International Group, Inc.
American International Group, Inc.
Teri Watson (Investor Community)
Herr (News Media)