By Dow Jones
SAN FRANCISCO A(Dow Jones) -- American International Group has filed suit in U.S. District Court in Manhattan seeking to wrest control of $20 billion in shares - about 12% of the giant insurer - from former Chief Executive Maurice R. "Hank" Greenberg, according to a media report Wednesday.
The suit claims the shares were set aside for the company's (AIG) benefit and must be surrendered by its owner, Starr International, a Bermuda-based private equity firm controlled by Greenberg, The Wall Street Journal reported in its online edition. See
AIG's move is a countersuit to litigation brought by Starr International earlier this year to secure the release of art, antiques and other property that Greenberg asserts should be in his possession as head of the private company, The Journal said.
AIG seeks to put the shares in a "constructive trust on behalf of AIG," run by AIG's management, The Journal said.
Lawyers representing Greenberg and Starr International said AIG's suit is without merit, according to The Journal.
In late May, AIG restated five years of reported profits, slicing off 10%, or $3.9 billion. AIG shares have fallen 16% since the company disclosed in February state and federal subpoenas about its accounting.
(END) Dow Jones Newswires
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