Nov. 6 (Bloomberg) -- The former top executive of American International Group Inc.’s real estate unit settled his lawsuit against the insurer seeking $274 million in compensation he claims he was promised and didn’t receive.
Kevin P. Fitzpatrick, formerly president and chief executive officer of the real estate unit, reached a settlement with AIG last night before a trial that was set to begin today in Manhattan federal court, his lawyer, Sean O’Shea, said in an e-mail. U.S. Magistrate Judge Michael H. Dolinger cited the agreement in dismissing the case today.
O’Shea declined to comment on the terms of the deal.
“We are pleased with the settlement,” Jon M. Diat, a spokesman for AIG, said in an e-mail, also declining to comment on specifics of the agreement.
Fitzpatrick alleged in a lawsuit filed in 2009 that the New York-based insurer failed to abide by a 2001 contract in which he was promised a share of profit from his unit in lieu of stock options and other equity grants. Fitzpatrick claimed the real estate businesses generated billions of dollars for AIG.
Suffering from a liquidity shortage during the financial crisis because of its credit-default swap activities, the insurer sought to “seize control” of the unit and disregard Fitzpatrick’s contract, he said in an amended complaint filed in March 2010.
AIG received a more than $182 billion bailout package from the federal government which it later repaid.
Fitzpatrick left the insurer in May 2009, he said. His total claim includes interest on the allegedly unpaid compensation, according to AIG’s Oct. 31 quarterly report.
The case is Fitzpatrick v. American International Group Inc., 1:10-cv-142, U.S. District Court, Southern District of New York (Manhattan).
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