C.V. Starr's cross-claim against AIG was brought as part of an ongoing lawsuit filed by the Teachers' Retirement System of Louisiana (the "Teachers Fund"). The Teachers' Fund suit alleges that certain transactions between C.V. Starr and AIG were unfair to AIG. On June 13, 2007, Vice Chancellor Leo Strine allowed C.V. Starr's claim against AIG to proceed.
"We are pleased that this claim was allowed to proceed at this time," said Lee Wolosky of Boies, Schiller & Flexner LLP, counsel to C.V. Starr.
Wolosky also said: "At the appropriate time, we intend to take legal action against other persons who personally benefited from the C.V. Starr-AIG relationship."
At the time of the disputed transactions, current AIG Chief Executive Officer Martin Sullivan and certain other AIG officers and directors were shareholders of C.V. Starr and had arranged, approved or participated in the disputed transactions between AIG and C.V. Starr. The AIG officers and directors were also direct beneficiaries of the profits C.V. Starr earned from the transactions, having received more than $380 million in connection with the 2005-2006 sale of their C.V. Starr stock.