NEW YORK (Bloomberg) — Maurice (Hank) Greenberg, American International Group Inc.'s former chief executive officer, spent the day in a Manhattan courthouse giving testimony in a New York lawsuit over an alleged multi-billion dollar fraud at the company.

Greenberg's deposition was postponed twice amid settlement talks with New York Attorney General Andrew Cuomo. Greenberg spokesman Glen Rochkind last week denied reports that a $100 million settlement was under discussion.

"There is no consideration being given to and no discussions concerning Mr. Greenberg paying $100 million in damages or fines," Rochkind said. Greenberg and his lawyer, David Boies, declined to comment yesterday at the courthouse.

In a separate case, Greenberg and three other former AIG executives agreed to pay $115 million to settle claims the insurer overpaid by $1 billion a company he controlled, an investors' lawyer said today. Insurance will cover 75 percent of the settlement, plaintiffs' lawyers said.

Greenberg and Howard Smith, a former AIG chief financial officer whose deposition last month also was postponed, allegedly used sham transactions to hide losses and inflate reserves at the company, the largest US insurer by assets, the state said in its complaint. Greenberg ran New York-based AIG for 38 years until he was forced to retire in 2005, two months before then-New York Attorney General Eliot Spitzer sued him.

Greenberg's company, closely held C.V. Starr & Co., gave the men bonuses based on fees from AIG, according to a lawsuit by a Louisiana pension fund. Yesterday's settlement eliminates the need for a trial scheduled to start September 15 in Delaware Chancery Court, said Stuart Grant, the fund's lawyer.

Greenberg quit AIG amid accounting probes by state and federal officials that led to a $3.4 billion restatement of profits for a five-year period beginning in 2000. The company agreed to pay more than $1.6 billion in 2006 to settle claims by Spitzer and the Securities and Exchange Commission that it misled investors.

Cuomo took over the New York lawsuit when he became state attorney general in January 2007.

Spitzer dropped portions of the lawsuit against Greenberg in 2006. Alex Detrick, a spokesman for Cuomo, didn't respond to requests for comment.

Assistant Attorney General David Ellenhorn told New York State Supreme Court Justice Charles Ramos today that Greenberg's deposition may take three days. Smith's deposition is to begin later this month and last three days, according to Smith's lawyer, Vincent Sama.