NU Online News Service, June 15, 4:10 p.m. EDT
American International Group and Starr International Co. Inc. squared off in federal court today over a block of AIG's stock owned by Starr International.
Opening arguments at the jury trial began before U.S. District Court Judge Jed S. Rahoff in Manhattan.
The jury will have to decide who has ownership rights to stock owned by Starr, which is headed by former AIG Chief Executive Officer Maurice Greenberg.
Starr contends that AIG, by listing the holdings as affiliated with AIG, cannot dispose of the shares, while AIG says there was a breech of trust and the holdings belong to AIG.
AIG is putting the value of the shares in the possession of Starr at $4.3 billion as of 2005.
A spokesman for AIG has said if the company prevails, that proceeds from the trial would be used repay the company's debt to the U.S. government.
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