Agreements

AIG, Greenberg Settle

AIG has agreed to settle all legal disputes with its former chairman Hank Greenberg, its former chief financial officer Howard Smith and the two companies run by Greenberg. Government-controlled AIG had a $1 billion claim pending in a civil suit against Greenberg and Smith; under the settlement, both parties agree to release each other from all claims. Greenberg said he hopes to help AIG "in trying to preserve and restore as much value as possible for all of AIG's stakeholders." After Greenberg left AIG four years ago, the company settled with the New York attorney general in 2006. That investigation precipitated Greenberg's leaving. Greenberg denied the charges (some have been dropped), and is fighting the case. AIG has agreed to give Greenberg some of his personal items, including photos and a Persian rug, plus some documents that will help him write his memoirs. The two parties have agreed to not publicly disparage each other.