Some court battles between insurer American International Group and the CV Starr & Company agencies controlled by former AIG chairman Maurice Greenberg have ended, it was announced today.
A joint statement from the two firms, both with offices in New York, said they have reached a settlement of “disputes over the termination of the managing general agency relationships between their respective subsidiaries and the use of the “Starr” and “American International” trademarks.
“As a result of the settlement, the terms of which are confidential, AIG shall refrain from conducting business under the ‘Starr’ and related names, and C.V. Starr shall refrain from conducting business under the ‘AI,’ ‘American International’ and related names,” the firms said.
The settlement involved 18 different court actions and arbitrations, and included cases in both Manhattan Federal Court and New York Supreme Court, a county level tribunal, as well as lawsuits in Georgia and Delaware
The settlement does not resolve issues between AIG and other entities under Mr. Greenberg’s control–notably Starr International Company, with offices in Dublin and Bermuda, which controls 12 percent of AIG stock
AIG, in court papers last year, said Starr share assets in the past were used to provide deferred compensation to AIG’s top management and longtime employees.
AIG, in its action, said Starr had indicated it intended to discontinue the deferred compensation program, and use 270 million of its 290 million AIG shares for the benefit of its directors, officers and others.
Before today’s announcement, during the bitter battle between C.V. Starr and AIG, C.V. Starr at one point accused AIG of stealing information, employee poaching and other wrongdoing in an attempt to derail the Starr agencies’ efforts to break away from the insurers.
Starr brokerage and managing general agent operations were once intertwined with AIG, but began an acrimonious separation after Mr. Greenberg was ousted last year during a New York investigation of accounting and other irregularities at AIG. The probe led the insurer to agree to a $1.64 billion settlement. Mr. Greenberg is the chairman and CEO of C.V. Starr & Company.
AIG’s settlement disposed of civil fraud charges brought by New York Attorney General Eliot Spitzer. Mr. Greenberg, who remains a defendant in that case, is contesting the charges.