The petition is the latest move in a bitter feud that has erupted between AIG and Starr, which were affiliates in past times.
Former AIG Chairman and CEO Maurice R. Greenberg now helms Starr, which (despite its broken relationship with the giant insurer) continues to hold shares in AIG. Starr contends that PwC should be forced to resign because an AIG special litigation committee authorized shareholders to pursue a derivative action against PwC in Delaware Chancery Court earlier this year.
In the petition, Starr charges that “AIG’s decision to have the derivative plaintiffs prosecute the claims against PwC on behalf of AIG instead of having AIG’s own counsel prosecute the claims cannot eliminate the conflict that exists.” Starr also requested that the SEC call formal proceedings in order to evaluate PwC’s independence.
A spokesperson for AIG said the petition is “completely without merit. We have full confidence in the independence of PricewaterhouseCoopers; we did not authorize any claims against PwC.”
Spokespersons for Starr and PwC offered no comment.