Published January 07, 2013
NEW YORK – New York Attorney General Eric Schneiderman cannot object to a $115 million settlement between American International Group Inc shareholders and the insurer's former chief executive, a U.S. judge has ruled.
The New York Attorney General lacks standing to object to the settlement, U.S. District Court Judge Deborah Batts in Manhattan said in a ruling filed on Monday. She also denied Schneiderman's request to intervene.
The New York Attorney General's request to have the parties negotiate again raises concerns of "undue delay" and demands the court take action based on "sheer speculation and hotly contested expert evaluations," the judge said.
The judge set a fairness hearing for April 10.
The settlement involves former AIG Chief Executive Maurice "Hank" Greenberg, former Chief Executive Howard Smith and Greenberg's companies C.V. Starr & Co and Starr International Co.
In August, Schneiderman urged Batts to reject the accord, reached in 2009, saying an expert for shareholders made a math error that caused the payout to be too low. Lawyers for the shareholders responded it had no significant effect.
(Reporting By Karen Freifeld)