Eliot Spitzer had dropped several civil charges against the former chairman and CEO of American International Group Inc. (AIG), Maurice R. Greenberg, from a lawsuit accusing Greenberg of using accounting tricks to hide problems at the company.
Lawyers on each side disagree on the importance of the claims that have been narrowed to focus on masking underwriting losses and faltering reserves with various sham transactions, including one with a unit of Berkshire Hathaway Inc. (BRK-A), according to this NY Times article.
The original complaint was filed in May 2005. The amended complaint removes A.I.G. as a defendant since the company paid $1.64 billion in February to settle charges with federal and state regulators. It also removes accusations that A.I.G. paid too little into a state workers’ compensation plan, noting that the company had addressed that issue in its settlement.
Allegations that the company lied to state insurance regulators have been removed, as well as charges that life insurance policies were improperly used to create false underwriting income.
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