Brattle Group Analysis of Self-Dealing and Executive Compensation Helps Achieve Record-Setting $115 Million Settlement in Delaware Court on Behalf of AIG, 11:50a ET February 10, 2009 (PR NewsWire)
The Brattle Group announced today that economist Benjamin Sacks assisted plaintiff Teachers’ Retirement System of Louisiana (TRSL) in reaching a record settlement of $115 million on behalf of American International Group (AIG). The settlement was reached on September 11, 2008, only four days before the trial was set to begin in the six-year long litigation, and recently became final. This settlement is the largest ever for a derivative lawsuit in the Delaware Court of Chancery, and more than doubles the previous record.
TRSL alleged that former AIG Chairman and CEO Maurice Greenberg and three other former AIG executives breached their fiduciary duties by directing insurance business worth hundreds of millions of dollars in commissions to a company they owned and controlled called C.V. Starr & Co. (Starr). These relationships were terminated shortly after Mr. Greenberg resigned from AIG in the wake of accounting investigations.
AIG has received about $155 billion in bailout money. The disgraced CEO received $47 million in severance pay and $50 million in regular annual salary….there’s goes your bailout money.