American International Group (AIG), which has been suing former CEO Hank Greenberg for as much $1 billion, tonight announced it reached a settlement with Greenberg, and with former CFO Howard Smith, releasing both sides from any claims against one another. The settlement was presaged by a Wall Street Journal article last month. AIG may still pay some amount of Mr. Greenberg’s legal fees, the article notes, as yet to be determined but up to a limit of $150 million.
AIG’s current CEO, Bob Benmosche, said the settlement removes a distraction for AIG, and Greenberg said he looks forward to working with AIG to “preserve and restore as much value as possible for all of AIG’s stakeholders.
AIG shares rose 17 cents, half a percent, to $34.85 in after-hours trading, after falling 1% during the regular session. The stock has lost almost all its value since Greenberg left in 2005 and has risen only about 2% this year amidst the broad market rally.
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