NU Online News Service, Aug. 27, 3:00 p.m.EDT

Former American International Group Inc. Chief Executive Maurice"Hank" Greenberg and the company's former chief financial officerwill get $60 million from AIG's insurers as part of a proposedsettlement to resolve shareholder derivative claims.

The money paid by AIG's insurance carriers will go to Mr.Greenberg and Howard Smith, former CFO, "as reimbursement for theirlegal fees and expenses," AIG spokesman Mark Herr said.

The settlement total is $150 million, with $90 million going toAIG, minus attorneys' fees for the plaintiffs that filed the claimson behalf of AIG, Mr. Herr said.

More than 20 current and former officers and directors areinvolved in the settlement, he said. The investors alleged theywere deceived about problems at the insurer and lambasted bonusesthe executives received.

"We are pleased this matter has been satisfactorily resolved,"Mr. Herr said in an email.

In September 2009, AIG, Mr. Greenberg and Mr. Smith agreed tobinding arbitration to settle various legal disputes includingthis one, American International Group Inc. DerivativeLitigation in Delaware Chancery Court.

Lee Wolosky, a partner at Boies, Schiller & Flexner LLP, whorepresents Mr. Greenberg, did not immediately return a call forcomment.

AIG recently agreed to pay $725 million to Ohio and Floridapublic pension plan funds in a securities class-action settlementto resolve bid-rigging allegations.

In November 2009, AIG and Mr. Greenberg settled all outstanding disagreements that ensued after the ex-CEO left inMarch 2005.