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Greenberg tries to get lawsuit dismissed

NEW YORK (Bloomberg) — American International Group Inc.'s ex-Chief Executive Officer Maurice (Hank) Greenberg asked a New York judge to dismiss a lawsuit brought in 2005 by former state Attorney General Eliot Spitzer, Greenberg's attorney said.

Greenberg accused Spitzer of using the case to promote his political career, according to a filing in New York State Supreme Court provided by Greenberg's attorney, Nicholas Gravante.

"At that time, Spitzer was planning to run for governor of the state of New York, and he has since admitted that his high-profile pursuit of Greenberg achieved its intended objective of enhancing his reputation as he pursued higher office," Gravante wrote in the filing. "AIG was, at the time, one of the world's most successful companies and Greenberg was one of the world's most successful business leaders."

Spitzer accused Greenberg and former AIG chief financial officer Howard Smith of using sham reinsurance deals and other transactions to distort the reported financial condition of the company. Greenberg argued in the filing that statements he made that are part of the state's claims against him are either "omissions" or "immaterial."

AIG, once the world's largest insurer, ousted Greenberg in March 2005, two months before Spitzer sued him and Smith, alleging they misled regulators and investors. Spitzer dropped portions of the suit in 2006 that included four allegations tied to his investigation. Yesterday's filing by Greenberg seeks to dismiss the claims that are still pending without a trial.

AIG, based in New York, eventually restated its earnings, lowering them by $3.4 billion, and agreed to pay $1.64 billion to settle claims by Spitzer and other regulators, without admitting or denying wrongdoing. In court papers filed in July 2006, Greenberg argued AIG's 2005 restatement was unnecessary and designed to force him to retire.

In the filing, Greenberg said he relied on professional advisers for transactions that are the basis of claims in Spitzer's lawsuit. His lawyers argue that there isn't any evidence that he sought improper transactions or knew they were improper.