WILMINGTON, Del. (AP) - Attorneys for a Louisiana pension fund have reached a $115 million settlement in a shareholder lawsuit against former executives of insurance giant American International Group Inc.
The settlement was reached Thursday, just days before a trial was to begin in Delaware in the case that challenged commissions AIG paid to C.V. Starr & Co. That's a privately held affiliate controlled by former AIG chairman Maurice "Hank" Greenberg and three other AIG directors.
Attorneys representing the Teachers Retirement System of Louisiana say the settlement includes a $29.5 million payment from Greenberg and three other individual defendants. Liability insurance will cover the remaining $85.5 million.
The plaintiffs alleged AIG could have done the work for which it paid Starr, and that the commissions were simply a mechanism for Greenberg and other Starr directors to line their pockets. |