Former American International Group Inc. Chairman Maurice Greenberg has sued AIG in connection with allegations that AIG engaged in excessive speculation in derivatives after he left the company.
The speculation reduced the value of the AIG stock in Greenberg’s deferred compensation plans, Greenberg alleges in the suit, which was filed in the U.S. District Court in New York.
Greenberg said today on CNBC that his deferred comp losses totaled $2 billion.
“I was hurt very badly,” Greenberg said.
The AIG stock was awarded to Greenberg by Starr International Company, a company that formerly was an exclusive managing general agent for AIG. The firm owned stock as a result of the creation of AIG, but it split off soon after Greenberg left AIG in 2005 as a result of a settlement between AIG and another Greenberg firm, C. V. Starr.
Greenberg now uses C.V. Starr to broker commercial insurance for AIG competitors.
Greenberg says in the lawsuit that he wants to recover the difference between the price at which he bought the AIG shares and the “price of the true and fair value of these shares had defendants not engaged in material misrepresentations and omissions.”