(Bloomberg) — Former American International Group Inc. Chairman Maurice “Hank” Greenberg lost his bid to toss a decade-old fraud suit by New York’s attorney general, clearing the way for trial unless he appeals to the state’s highest court.
New York Attorney General Eric Schneiderman, who took over the case, claims Greenberg was responsible for sham transactions with General Reinsurance Corp. in 2000 and 2001 that inflated AIG’s loss reserves by $500 million.
A trial had been scheduled to start in February but was delayed as Greenberg sought to have the case thrown out. A New York state appeals court Thursday sent the case back for trial.
“We look forward to presenting the people’s case at trial,” Liz DeBold, a spokeswoman for Schneiderman, said in a statement. Steve Aiello, a spokesman for Greenberg, said he hasn’t made a decision yet whether to appeal.