NY court: Case against ex-AIG execs can continue

AP News
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Posted: Jun 25, 2013 1:26 PM

ALBANY, N.Y. (AP) — New York's top court says the state attorney general can continue his effort to bar two former American International Group Inc. executives from participating in the securities industry or leading a public company.

The Court of Appeals ruling involves a remaining piece of a high-profile lawsuit originally filed in 2005 by then-Attorney General Eliot Spitzer.

The lawsuit claims former AIG CEO Maurice "Hank" Greenberg and former chief financial officer Howard Smith engaged in accounting fraud meant to dress up the insurance giant's books. The firm was bailed out by the federal government during the 2008 financial crisis.

Tuesday's ruling shows that Attorney General Eric Schneiderman's (SHNEYE'-dur-muhnz) office dropped money claims in the case after a $115 million federal class action lawsuit by AIG shareholders was settled.