Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  American International Group    AIG

AMERICAN INTERNATIONAL GROUP (AIG)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

American International Group, Inc. : Appeals Court : Case Against AIG's Greenberg Should Go To Trial

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/09/2012 | 12:09am CEST
   By Erik Holm 
   Of  
 

A New York appeals panel said Tuesday that a lower-court judge was too hasty in ruling against former American International Group Inc. (AIG) Chief Executive Hank Greenberg in 2010.

The appellate court, in a 4-1 decision, said there was enough evidence in the state's fraud case against Greenberg and AIG's former chief financial officer, Howard Smith, for it to move ahead to trial and that a ruling for summary judgment on one part of the case had been premature.

The court threw out a portion of the Oct. 2010 ruling from New York State Supreme Court Justice Charles Ramos, in which Ramos had concluded that Greenberg and Smith were liable for damages caused by the smaller of two reinsurance transactions that New York's attorney general has said were shams to cover up AIG's true financial condition.

The entire lawsuit had been on hold as Greenberg's legal team and the New York Attorney General's office both appealed different aspects of the Ramos ruling. The case stretches back to 2005, when then-New York Attorney General Eliot Spitzer accused Greenberg and Smith of helping to arrange the reinsurance transactions to hide AIG's losses.

Greenberg was forced from the insurer in 2005 amid accounting probes by the attorney general's office and other regulators. The lawsuit has now spanned the tenures of three attorneys general.

Ramos had concluded in 2010 that Greenberg and Smith were both aware of a "fraudulent or deceitful" transaction involving the now-defunct Capco Reinsurance Co. to cover up about $200 million in underwriting losses in AIG's general insurance business. AIG converted losses in its auto-warranty business into investment losses in Capco--outside AIG's general insurance business--to reduce their presence in AIG's own accounting.

On Tuesday, the New York State Supreme Court's Appellate Division for the First Department found that there was enough evidence for a trial over both the Capco transaction and a larger one involving General Re Corp., a unit of Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB).

There are "triable issues of fact as to whether defendants knew of, or participated in the fraudulent aspects of the GenRe and Capco schemes, given the nature and degree of their personal involvement in both of the challenged transactions, as well as defendants' responsibilities within the corporation," the appellate judges wrote.

The appeals court also upheld Ramos's decision not to grant summary judgement to Greenberg and Smith. A lawyer for Smith, in a joint statement with Greenberg's lawyers, said the two men intend to take the case to New York's highest appeals court to challenge that decision.

"Mr. Greenberg and Mr. Smith intend to seek leave to appeal to the New York Court of Appeals with regard to these matters in order to have this misguided action, filed by then Attorney General Elliot Spitzer in 2005, conclusively dismissed," said Smith's attorney, Vincent Sama.

-By Erik Holm, Dow Jones Newswires; 212-416-2892; [email protected]

--Chad Bray contributed to this article.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMERICAN INTERNATIONAL GRO
06/21AMERICAN INTERNATIONAL : Tata Motors and Tata AIG join forces to ensure Safe Jou..
AQ
06/21AMERICAN INTERNATIONAL : Aig buys uk life insurance business from munich re
AQ
06/20A.M. BEST : Affirms Credit Ratings of American International Group, Inc. and Cer..
BU
06/20AMERICAN INTERNATIONAL : AIG to Acquire UK Group Life Specialist Ellipse from Mu..
BU
06/15AMERICAN INTERNATIONAL : AIG Co-Sponsors World Elder Abuse Awareness Day Panel w..
BU
06/14AMERICAN INTERNATIONAL : AIG Helps Launch the Alliance for Lifetime Income to Em..
BU
06/14CITRIX : Trillium Asset Management LLC Sells 46,613 Shares of Citrix Systems, In..
AQ
06/13AMERICAN INTERNATIONAL : AIG Announces Adjustments to Warrant Exercise Price and..
BU
06/13AMERICAN INTERNATIONAL GROUP INC. : Sells 20,992 Shares of Xerox Corp (XRX)
AQ
06/13AMERICAN INTERNATIONAL GROUP : Ex-dividend day for
FA
More news
News from SeekingAlpha
06/20AIG to buy UK group life specialist Ellipse from Munich Re 
06/13AIG reduces exercise price on warrants to account for dividend 
06/08American International Group (AIG) Life & Retirement Investor Meeting - Slide.. 
06/06Home insurance stocks move on potential Amazon disruption 
05/30Beating The Market With High Conviction Buybacks 
Financials ($)
Sales 2018 47 990 M
EBIT 2018 6 711 M
Net income 2018 4 487 M
Debt 2018 -
Yield 2018 2,37%
P/E ratio 2018 11,58
P/E ratio 2019 9,56
Capi. / Sales 2018 1,04x
Capi. / Sales 2019 1,00x
Capitalization 49 821 M
Chart AMERICAN INTERNATIONAL GRO
Duration : Period :
American International Gro Technical Analysis Chart | AIG | US0268747849 | 4-Traders
Technical analysis trends AMERICAN INTERNATIONAL GRO
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 62,9 $
Spread / Average Target 14%
EPS Revisions
Managers
NameTitle
Brian Duperreault President, Chief Executive Officer & Director
Douglas M. Steenland Independent Non-Executive Chairman
Peter Zaffino Global Chief Operating Officer & Executive VP
Siddhartha Sankaran Chief Financial Officer & Executive VP
Martha J. Gallo Chief Information Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
AMERICAN INTERNATIONAL GROUP-7.33%49 821
ALLIANZ-8.14%87 722
CHUBB LTD-13.29%60 391
ZURICH INSURANCE GROUP-0.44%44 952
MARSH & MCLENNAN COMPANIES1.12%41 834
HARTFORD FINANCIAL SERVICES GROUP (THE)-5.74%18 999