Ex-AIG boss to sue management
Lawsuit relates to accounting restatement
Having already launched a lawsuit against PwC, the auditors of insurance
giant American International Group,
Hank
Greenberg, the former company CEO, has now launched a legal action
against AIG’s management.
Greenberg was forced to step down as chief executive in March 2005, over
‘unnecessary and improper’ decisions involved in last year’s multi-billion
dollar accounting restatement.
In turn Greenberg is facing a shareholder lawsuit being led by AIG, which is
claiming billions of dollars in damages from him.
In his suit Greenberg claims the accounting decisions that were attacked in
the restatement were ‘known, recommended, and approved by AIG’s current board
and management – as well as by AIG’s internal and external auditors, lawyers and
other advisors’
Further reading:
Former AIG finance chief quits board
Former AIG head leaves under accounting fraud cloud
Restated AIG results show 2004 drop