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.
Continue reading AIG, Greenberg and Smith Announce Resolution of All Disputes
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AIG-Greenberg, Full Text of the Settlement
According to [General Counsel] Joye’s notes, one employee even described a meeting about
the matter at which Greenberg had asked, “Are we legal?” When an
employee responded, “If we were legal, we wouldn’t be in business,”
Greenberg “began laughing, and that was the end of it.”