American International Group Inc. (AIG) Wednesday sued its ousted chairman Maurice R. "Hank" Greenberg and ex-chief financial officer Howard I. Smith for more than $1 billion in damages stemming from accounting troubles on their watch, reported Dow Jones.
According to Dow Jones, the lawsuit was originally filed in Delaware's Court of Chancery by AIG shareholders angered at the high cost of dealing with regulatory probes of sham transactions, financial restatements and securities class actions, who felt AIG executives should be held to account.
Wednesday's revised complaint was filed by AIG, which issued a statement saying a special panel of the company's board had decided the company should take over the case against Greenberg and Smith, reported Dow Jones.
AIG has been distancing itself from Greenberg, who was forced to resign in March 2005 after decades at the helm, reported Dow Jones.
Then-New York Attorney General Eliot Spitzer urged Greenberg's ouster, and later settled with AIG, reported DOW Jones.
The New York Attorney General lawsuit against Greenberg is still moving through the courts. It blames AIG's long-time chairman for causing harm to the marketplace by flawed accounting, reported Dow Jones.
According to Dow Jones, the lawsuit AIG filed Wednesday in Delaware alleges Greenberg and Smith failed in their duties to AIG by mishandling the accounting and asks a court to force them to pay the company back for a series of settlements, fines and lawsuits relating to misstatements in the financial reports.-New York State Society of Certified Public Accountants
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