High court turns away appeal from former AIG executives

Civil Litigation News

The Supreme Court won't hear an appeal from two former American International Group executives seeking to avoid civil fraud claims on charges they hid hundreds of millions of dollars in losses from investors.

The justices on Monday let stand a lower court ruling that said former chief executive officer Maurice Greenberg and former chief financial officer Howard Smith must stand trial.

New York state has accused the former executives of manipulating AIG's accounting records to hide hundreds of millions of dollars in losses from investors.

The state seeks an order banning Greenberg from working in the securities industry or as an executive for any public company. It also is seeking $53 million, including bonuses Greenberg received during the period he is alleged to have manipulated the company's finances.

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