Former American International Group Chairman and Chief Executive Officer Maurice "Hank" Greenberg and other former executives at the insurance giant have reached a settlement with a shareholder group suing them, a source close to the matter has told CNBC.
The Louisiana Teachers Pension Fund had brought suit against Greenberg and the other execs for almost $1 billion, claiming that AIG overpaid C.V. Starr, an AIG subsidiary, for work performed for the insurer.
The Louisiana pension fund suit is not related to the three-year-old civil fraud charges brought against Greenberg by New York's attorney general.
The AIG execs in the recently settled suit were also C.V. Starr officers. Any damages recovered would be paid to AIG .
The trial was slated to start on Monday in Wilmington, Del., but today's settlement averts any courtroom activity.
The settlement is for over $100 million. Approximately $85 million will come from directors
and officers, and approximately $25 million from C.V. Starr. Greenberg will pay nothing.