UPDATE 1-Ex-AIG main Greenberg can pursue Spitzer defamation lawsuit

(Provides assertion from Eliot Spitzer, information on AIG bailout)

By Jonathan Stempel

NEW YORK, Sept 14 (Reuters) – Maurice “Hank” Greenberg,
previous main government of American Global Team Inc
, may perhaps pursue large parts of his defamation lawsuit
versus previous New York Attorney Basic Eliot Spitzer, a New
York point out appeals courtroom dominated.

Wednesday’s conclusion by the Appellate Division in Brooklyn,
New York arrived seven months soon after Greenberg, 92, attained a $9
million settlement with Eric Schneiderman, the present point out
lawyer basic, of civil accounting fraud fees initial
introduced by Spitzer in 2005.

The grievance “sufficiently stated that Spitzer acted with
precise malice” in criticizing Greenberg, hoping to injury
Greenberg’s standing and job while bolstering his have,
Justice Cheryl Chambers wrote for a four-judge panel.

Greenberg and Spitzer were interesting a June 2014 decreased courtroom
ruling permitting Greenberg pursue element of his circumstance.

The appeals courtroom restored some promises that Greenberg
introduced versus his longtime nemesis.

“I search forward to proving the truthfulness of all the
statements I have created about Hank Greenberg’s actions as CEO of
AIG,” Spitzer claimed in an electronic mail. “A decade of authorized
obstructionism by Greenberg will not obscure the details.”

David Boies, Greenberg’s longtime lawyer, claimed in an electronic mail:
“We are, of system, delighted with the appellate court’s conclusion,
which will now allow Mr. Greenberg’s promises to continue to

The lawsuit arose from statements Spitzer created in tv
interviews in 2012 and a ebook, “Preserving Capitalism Situation By
Situation,” in 2013.

Greenberg claimed Spitzer falsely implicated him in fraud at
AIG, and recommended he was “taken off” or “thrown out” by the
insurer’s board since of his part, among the other allegations.

The appeals courtroom claimed Spitzer’s track record as lawyer
basic could have left persons “fewer skeptical” and “far more
keen” to believe that him, which include when he advised then-CNBC anchor
Maria Bartiromo that “Hank Greenberg at AIG dedicated fraud. The
report on that is indisputable.”

It claimed the decreased courtroom judge erred in dismissing promises
about statements tying Greenberg’s 2005 exit from AIG to fraud
there, citing a deficiency of evidence of these types of a hyperlink.

AIG in 2006 paid out $1.64 billion to settle regulatory probes
of its small business techniques. Two yrs later on, it obtained what
grew to become a $182.3 billion federal bailout.

In May perhaps, a federal appeals courtroom claimed Greenberg’s Starr
Global Co, a massive AIG shareholder, experienced no authorized proper to
obstacle that bailout. Starr experienced sought far more than $40 billion
of damages for shareholders.

Following serving as lawyer basic, Spitzer was New York’s
governor for 15 months. He resigned in 2008 soon after getting linked
to a substantial-finish prostitution ring.

The circumstance is Greenberg v Spitzer, New York Condition Supreme
Courtroom, Appellate Division, 2nd Department, No. 2014-07682.
(Reporting by Jonathan Stempel in New York More
reporting by Nate Raymond in Boston Enhancing by Steve Orlofsky
and Dan Grebler)

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