AIG agrees $150m deal with former execs

IN a complex legal case involving more than 20 former executives at AIG, the insurer has agreed to a $150m settlement, of which more than $80m will go to both sides’ legal representatives. Bloomberg reported a filing in the Delaware Chancery Court relating to a so-called derivative suit, in that investors filed the suit on behalf of AIG, against former executives of AIG. Any monies obtained would come from AIG’s directors’ and offficers’ insurers, which have agreed to the settlement, and would go to AIG, not to the investors. Of the $150m, $50m will be set aside to cover the legal fees of former AIG boss Hank Greenberg (pictured) and the other ex- AIG executives. Delaware firm Grant & Eisenhofer, which was the lead lawyer for the investors, will get some $21m in fees. AIG executives allegedly rigged bids and disguised premiums to make AIG’s numbers look better than they were – a claim Greenberg has denied. His lawyer Leo Wolosky said the litigation had been settled “with Greenberg paying nothing”.