Judge orders AIG to give Greenberg critical report
NEW YORK (Reuters) ? A New York state appeals court justice has ordered American International Group Inc. to turn over a report critical of former chief executive Maurice (Hank) Greenberg to the ousted CEO by March 6.
New York Attorney General Eliot Spitzer obtained a version of the report by AIG?s lawyers before suing the world?s largest insurer, Greenberg and former AIG chief financial officer Howard Smith last May.
Justice James Catterson of the New York State Appellate Division in Manhattan ordered AIG to turn over the report on Monday after State Supreme Court Justice Charles Ramos issued a similar order in January. Ramos then reaffirmed his order.
?If we don?t have that report next Monday we will move for a contempt hearing (against AIG),? said Greenberg attorney Nicholas Gravante Jr. of Boies, Schiller & Flexner LLP.
Greenberg has said he needs the report to defend himself against Spitzer, who accused him of engineering fraudulent transactions that exaggerated AIG?s strength to prop up its stock price.
AIG paid $1.64 billion to Spitzer, the US Securities and Exchange Commission and US Department of Justice to settle its portion of the case.
Gravante said the justice also gave Greenberg the right to file for discovery of AIG documents and subpoena AIG officials, which he planned to do today.
?We will lay the groundwork for a motion to dismiss the case (against Greenberg),? Gravante said.
Chris Winans, an AIG spokesman, confirmed Catterson?s ruling but declined to discuss it.
The report details how AIG, which Greenberg ran for nearly four decades, overstated net income from 2000 to 2004 by $3.9 billion or ten percent.
Spitzer has said he does not plan to file criminal charges against Greenberg.
The US Justice Department is still pursuing a criminal probe against Greenberg, a person familiar with the investigation has said.
Spitzer himself has 90 days to produce documents related to the Greenberg case, Gravante said.
