Derivative Suit Against AIG Settled
Teachers' Retirement System of Louisiana v. Greenberg, is a derivative suit against AIG and its key officers, including former CEO Hank Greenberg. It was scheduled to go to trial on Monday, Sept. 15 but reportedly has just settled. Kevin LaCroix on his blog, The D & O Diary, describes the recent settlement reached as well as the aspects of the settlement that impact D & O insurance policy coverage in general.
The claims in the suit related to payments made by AIG to C.V. Starr and executives who served on both AIG and Starr's board. Kevin La Croix's post above provides more details and links to other stories about it. Greenberg's lawyer was quoted as saying that Greenberg is not paying anything out of his pocket towards the settlement amount. Moreover, his lawyer is quoted as saying that:
"The compensation and agency arrangements Mr. Greenberg presided over while at AIG were not only proper, but contributed to AIG's growth into the largest and most successful insurance company in the world."
