After years of lawsuits, American International Group Inc., its former chairman and CEO and its former chief financial officer have agreed to accept binding arbitration of various legal disputes among them.
In a joint statement, AIG, its former chairman and CEO Maurice R. Greenberg, and its former CFO Howard I. Smith said they have concluded that it is “preferable to resolve as many of their disputes as possible in a private setting and in a more expeditious and cost-effective manner.”
The action comes on the heels of the appointment of Robert H. Benmosche as AIG’s fourth chief executive officer in just over a year just weeks ago. Benmosche came out of retirement to take over for Ed Liddy.
The arbitration will begin no later than Oct. 15, and will conclude by Mar. 31, 2010, the statement said.
In a written agreement filed yesterday, the parties stated that the following claims should be submitted immediately to binding arbitration:
All claims of AIG against Greenberg and Smith in American International Group Inc. Consolidated Derivative Litigation, Civil Action No. 769-VCS; all claims of AIG against Greenberg and Smith In re American International Group Inc. Derivative Litigation, Master File No. 04 Civ. 8406 (DLC); and all claims of Greenberg and Smith against AIG for advancement or indemnification.
The parties do not purport to include in the arbitration any claims currently being prosecuted in pending cases by AIG shareholders against Greenberg or Smith.