Recovered $90 million for AIG in derivative litigation arising from executives’ bid-rigging and accounting fraud
Plaintiff(s):
Shareholders of American International Group, Inc. (AIG)
Case type / claims:
Derivative action alleging a widespread bid-rigging and kickback scheme orchestrated by senior AIG executives, including former CEO Hank Greenberg, to inflate reported income and deceive shareholders.
Defendant(s):
Former officers and directors of AIG, including CEO Hank Greenberg
Jurisdiction:
Delaware Chancery Court
Outcome:
- $90 million settlement returned directly to AIG.
- Court praised the case as “an incentive for real litigation” and commended counsel for “a lot of high-quality lawyering.”
- Case exposed systemic misconduct and led to restatement of years of AIG’s financial statements.
