Former AIG boss want NY attorney’s case thrown out
Former AIG chief executive Maurice "Hank" Greenberg has asked a judge to dismiss a civil fraud lawsuit brought by New York's attorney general, over the General Re sham reinsurance transaction, Reuters reports.
In 2005 Eliot Spitzer, then New York's attorney general started suing Greenberg and former AIG chief financial officer Howard Smith. Spitzer's successor Andrew Cuomo has taken over the lawsuit.
Cuomo said that Greenberg initiated and negotiated the General Re transaction, while Smith decided to book reserves despite knowing he had no basis to do so.
"At the very least, the reckless indifference" they showed "makes them fully liable" under the Martin Act, Cuomo argued.
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