Spitzer Must Face Defamation Case by Ex-AIG Boss

By Chris Dolmetsch

A defamation lawsuit by former American International Group Inc. (AIG) Chief Executive Officer Maurice Greenberg against Eliot Spitzer may move toward trial, a state judge ruled after throwing out many of the claims against the ex-New York governor.

Greenberg, 89, sued Spitzer, 55, in New York state court in Putnam County last year seeking damages for statements he made in 2012 accusing the former executive of fraud. Today’s ruling comes weeks after Greenberg was ordered to face a lawsuit filed in 2005 by then-New York Attorney General Spitzer accusing him of orchestrating sham transactions to inflate AIG’s financial health.

The statements “are part of a long-standing malicious campaign by Mr. Spitzer, through the publication of false and defamatory statements, to discredit Mr. Greenberg and damage Mr. Greenberg’s reputation and career, while attempting to bolster Mr. Spitzer’s own reputation and career,” Greenberg said in his complaint. The former executive denied any wrongdoing in the AIG case and has repeatedly sought its dismissal as meritless.

Today, New York State Supreme Court Justice Lewis Lubell said the defamation suit may move forward after granting a request by Spitzer to dismiss most of his statements, including allegations regarding Greenberg’s departure from AIG.

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