Greenberg denies allegations of irregular accounting

A jury has been selected in the $4.3bn lawsuit brought by the US insurer AIG against its former chief executive Hank Greenberg.

AIG is trying to reclaim money it says was wrongly pocketed through stock sales by Greenberg.

It claims Greenberg breached his legal responsibilities by selling AIG shares held in trust by Starr, the investment company he runs, in the months after his resignation.

Judge Jed Rakoff said: “This is a case about an alleged trust and an alleged conversion of valuable shares. It’s not a forum for airing all of the innumerable other issues, most of which are resolved, regarding Mr Greenberg, Starr, AIG bonuses, investigations and what have you.”

Greenberg headed AIG for nearly 40 years before he stepped down in 2005 over irregular accounting allegations, which he has always denied.