NY state settles fraud lawsuit vs. former AIG CEO Greenberg

New York Attorney General Eric Schneiderman (SHNEYE'-dur-muhn) says a securities fraud lawsuit involving the former chief executive of insurance company American International Group Inc. has been settled.

An agreement reached through a mediator requires Maurice R. Greenberg to pay $9 million he received as performance bonuses.

Greenberg was accused of manipulating AIG's accounting records in 2000 and 2001 to hide hundreds of millions of dollars in losses from investors. He says he agreed to the settlement to resolve the 12-year-old case.

The settlement also requires Howard I. Smith, AIG's former chief financial officer, to pay $900,000.

AIG is one of the world's largest insurance companies. It nearly collapsed in 2008 at the height of the financial crisis and received about $180 billion in bailout aid.