Starr Claims It’s Independent from AIG

October 17, 2005

Starr International Co., a company headed by former American International Group CEO Maurice Greenberg, is disputing claims that it is affiliated with AIG and therefore should return the 12 percent or $19 billion of AIG stock it owns.

Starr’s lawyers earlier this week filed papers in U.S. District Court in Manhattan in support of its claim of independence from AIG. Last month, AIG’s lawyers demanded that the shares be returned and accused Starr of breach of contract.

In its filings, Starr acknowledged that it has run two compensation programs for AIG executives during the past 30 years but that it had only paid out four percent of its AIG stock during that time. Starr denied that it vowed to keep running the programs in the future.

Starr said that recent developments, including Greenberg’s ouster as CEO of AIG and AIG’s own refusal to return certain fine art serve to demonstrate its independence from AIG. Starr has filed suit to force AIG to return the artwork

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