Lawyers representing a large investor say former American International Group Inc. executives have agreed to contribute to a $115 million settlement fund.
The law firm of Grant & Eisenhofer P.A., Wilmington, Del., which represents the Teachers’ Retirement System of Louisiana, says its lawyers have negotiated a settlement that calls for former AIG Chairman Maurice Greenberg and 3 other AIG executives to pay $29.5 million to the settlement fund, and for director’s and officer’s liability insurance arrangements to pay another $85.5 million, the firm says.
The suit, filed in 2002, was about to go to trial, the firm says.
The settlement agreement is subject to court approval.
Teachers’ Retirement has accused AIG executives of breaching their fiduciary duty by shifting company money to private affiliates that they controlled, by paying commissions to an agency subsidiary, C.V. Starr & Company, for generating business that AIG itself could generate itself.
Greenberg and the other executives affected could not immediately be reached for comment.