NEW YORK (AP) -- American International Group Inc. has agreed to settle all legal disputes with its former chairman Maurice "Hank'' Greenberg, the company said late Wednesday.
AIG also settled all its legal disputes with former Chief Financial Officer Howard I. Smith. AIG, which is owned by U.S. taxpayers, said it will pay up to $150 million in past legal costs for Greenberg and Smith.
AIG has said that a Greenberg-controlled investment firm owed it $4.3 billion to cover stock taken from a retirement fund. AIG claimed the fund was held in an oral trust for use by company employees. Greenberg argued he could sell the shares because they were controlled by his company, Starr International.
AIG had also claimed that Greenberg and Smith owe part of the $1.6 billion AIG has paid to settle a range of issues with regulators including the Securities and Exchange Commission, Justice Department and New York Attorney General.
Greenberg was ousted from New York-based AIG amid an accounting scandal in 2005. The Securities and Exchange Commission charged both Greenberg and Smith with misstating the company's earnings.
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