On August 31, 2009, AIG announced its agreement with Maurice R. Greenberg, its former CEO, and Howard L. Smith, its former CFO, to resolve their legal disputes in binding arbitration. The agreement was made filed as Exhibit 10.1 to AIG’s August 31, 2009 Form 8-K Report to the SEC. The Agreement is available here.

The Agreement encompasses claims by AIG against Greenberg and Smith pending in shareholder derivative actions pending in Delaware and New York and Greenberg and Smith’s claims against AIG for indemnification.

What’s more, AIG and Greenberg and Smith have also agreed to “consider whether to arbitrate” AIG’s claims against Starr International Co., Inc., which are pending in the SDNY, and AIG’s claims against Greenberg and Smith, which are pending in NY state court.

The Starr litigation concerns AIG’s claim that pursuant to an oral trust created in 1970 Starr had agreed to hold AIG stock for the benefit of AIG and its deferred-compensation program. On Monday, August 31, 2009, U.S. District Judge Jed Rakoff rejected AIG’s claim, confirming the jury’s July 7, 2009 advisory verdict for Starr. Judge Rakoff did not address the jury’s rejection of AIG’s claim that Starr looted $4.3 billion in stock from AIG. A copy of the decision is available here.