AIG Faces Another Blow As Ex-CEO Sues For Fraud

Law360, New York (March 2, 2009, 12:00 AM EST) -- Former American International Group Inc. CEO Maurice “Hank” Greenberg on Monday filed suit against his former company, accusing the beleaguered insurance giant of securities fraud.

The complaint, filed in the U.S. District Court for the Southern District of New York, claims the company deceived its former leader — and the public — by lying about its exposure to credit default swap losses.

AIG's misrepresentations caused Greenberg to acquire the company's shares at an inflated price as part of AIG's deferred compensation plan, the lawsuit claims. The...
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