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Greenberg wins right to see attorney memos

Maurice Greenberg, former CEO of American International Group.

NEW YORK (Bloomberg) ? Former American International Group Inc. chief executive officer Maurice Greenberg won the right to see attorney memos that were turned over to New York Attorney General Eliot Spitzer before the state accused him of fraud.

State Supreme Court Justice Charles Ramos, in a ruling made public on Monday, said Greenberg is entitled to some memos drafted by lawyers working for AIG that were later used in a report which Spitzer used as part of his settlement with AIG.

Ramos said while the report wasn?t ever made public, some of these documents weren?t covered by attorney-client privilege because they ?provided a basis upon which factual or legal conclusions were made in the unprivileged report?.

?This is another important ruling in Mr. Greenberg?s favour that allows us to lay the groundwork to dismiss what?s left of this case,? said Nicholas Gravante, a lawyer for Greenberg.

?Mr. Greenberg isn?t sitting back just because he?s been vindicated of most of the charges.

?We won?t rest until the remaining charges are thrown out.?

Gravante said he had earlier gained access to the internal AIG report. Gravante also said that Ramos directed the law firm that prepared the memos, Paul Weiss Rifkind Wharton & Garrison, to turn them over to Greenberg?s lawyers by October 4.

Ramos denied Greenberg?s request for disclosure of AIG?s legal files relating to the subject insurance transactions saying they were covered by the attorney-client privilege.

Spitzer spokesman Brad Maione declined to comment on the ruling.

Ramos is presiding over a lawsuit against Greenberg and former AIG chief financial officer Howard Smith which accuses both men of using sham reinsurance deals and other transactions to distort the reported financial condition of the world?s largest insurer.

AIG, the world?s largest insurer, ousted Greenberg in March, 2005, two months before Spitzer sued him and former Smith, alleging they mislead regulators and investors.

AIG, based in New York, eventually restated its earnings lower by $3.4 billion and agreed in February to pay $1.64 billion to settle allegations by Spitzer and other regulators, without admitting or denying wrongdoing.

AIG spokesman Chris Winans had no comment. Last month Spitzer dropped several of the allegations against Greenberg and Smith that were part of AIG?s accord.

A date in the case hasn?t been set. Spitzer, 47, is running for governor of New York.