AIG and former CEO Hank Greenberg can be thankful for being close to the end of nearly five years of acrimonious fighting.
They have agreed to settle all claims against each other.
DealBook: The American International Group said Wednesday afternoon that it has settled its long-running legal battle with Maurice R. Greenberg, the company’s former chief executive, in an attempt to move past years of contentious fighting.
Among the terms of the settlement, which also applied to former A.I.G. chief financial officer Howard I. Smith and two firms associated with Mr. Greenberg, C.V. Starr & Company and Starr International Company, is the release of the parties from all claims.
The parties have been battling since Greenberg left the company in 2005.
Greenberg and his co-plaintiffs agreed to dismiss with prejudice two suits pending against AIG and AIG will dismiss with prejudice three suits it has against Greenberg and the others.
The settlement agreement also lists several personal items that will be returned to Greenberg, including photographs of him with Chinese leaders and a Persian rug “previously located in anteroom of board room.”
Greenberg and Smith will be reimbursed for legal fees and expenses up to $150 million; this amount will be decided by an independent third party.
The parties attorneys are probably celebrating this end as well — Paul Weiss represented AIG, Winston & Strawn represented Smith and David Boies himself signed on behalf of Greenberg.
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