N.Y. AG drops damages claims against ex-AIG CEO

By Jessica M. Karmasek | Apr 29, 2013

NEW YORK (Legal Newsline) -- New York Attorney General Eric Schneiderman told the state's high court last week that he is dropping damages claims against ex-American International Group Inc. Chief Executive Officer Maurice "Hank" Greenberg.

However, Schneiderman still plans on seeking a ruling banning Greenberg from working in the securities industry, or serving as an officer of a public company.

According to Bloomberg News, New York Solicitor General Barbara Underwood sent a letter Thursday to the clerk of the New York State Court of Appeals, informing it of the attorney general's decision in the lawsuit.

In the suit, filed back in 2005, the state accused Greenberg and former AIG Chief Financial Officer Howard Smith of using "sham transactions" to distort AIG's financial condition.

A lawyer for Greenberg told Bloomberg that he was pleased with Schneiderman's decision to drop the claims.

However, he contends the lawsuit against his client should be dismissed entirely.

"(The New York Attorney General) has had eight years, millions of pages of documents, and unlimited depositions to try to develop evidence of appellants' alleged wrongdoing," David Boies wrote in a letter to the Court of Appeals Friday, according to the news service. "Nothing is served by further prolonging this case."

But Schneiderman argues that Greenberg should be held "publicly accountable," a spokesman for the attorney general told Bloomberg.

From Legal Newsline: Reach Jessica Karmasek by email at jessica@legalnewsline.com.

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