To say that American International Group is having a tough month would be an understatement, seeing its claim rejected by a jury in a dramatic legal showdown with former CEO Maurice Greenberg, its stock dismissed by an analyst as potentially worthless, and its insurance pricing practices probed by regulators.
A federal jury in Manhattan rejected a claim by AIG that Starr International Company (SICO), headed by Mr. Greenberg, was obligated to hold shares of AIG stock in trust for retiring AIG employees, and owed the company $4.3 billion in damages.
Mr. Greenberg was forced to leave as chair and chief executive officer of AIG in 2005 amid allegations that the firm has misused finite reinsurance to artificially bolster its balance sheet–eventually resulting in the convictions of one AIG and four General Reinsurance executives.
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