Former American International Group Chairman and Chief Executive Officer Maurice "Hank" Greenberg will unwind the transfer of $2.28 billion of AIG shares to his wife, a spokesperson for his legal team said on Tuesday.
"The original transfer was completely misunderstood and caused needless distractions and wasteful litigation," said the spokesperson, who asked not to be named.
The 41.399 million AIG shares will be returned to joint ownership by Greenberg and his wife.
Ohio authorities, prosecuting a securities class action on behalf of the Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio and the Ohio Police and Fire Pension Fund and AIG investors, had filed a suit in May against Greenberg to put a hold on his transfer of shares. That suit was dropped.
Speaking of shares transferred to Corinne Greenberg two days before Greenberg stepped down from the helm of the insurer, Ohio Attorney General Jim Petro had called the transaction "suspect."
On Tuesday, Michelle Gatchell, Petro's spokeswoman said, "Attorney General Petro brought a case to set aside this transfer as a fraudulent conveyance. We are pleased that Mr. Greenberg has decided to unwind this transaction."
New York authorities in May filed a civil lawsuit against AIG, Greenberg, and his chief financial officer Howard Smith, saying there had been a "pattern of fraud" at the company, the world's biggest insurer by market value.
At the end of May, AIG said it had overstated net income for the past five years by $3.9 billion, or 10 percent.
