Article: New York sues AIG, Greenberg for improper accounting practices: lawsuit filed by Spitzer, Mills seeks injunctive relief, damages, profit disgorgement.(MORE TO COME)(American International Group Inc.)(Maurice "Hank" Greenberg)

NEW YORK'S ATTORNEY GENERAL and the state's insurance superintendent announced that they have filed a civil suit against American International Group alleging that former company executives used improper accounting practices to pump up earnings and to deceive investors and regulators.

The suit, filed in the Supreme Court of the State of New York, County of New York, last Thursday against the New York-based insurance giant, claims the company "engaged in misleading accounting and financial reporting, projecting an unduly positive picture of AIG's underwriting performance for the investing public."

The suit names the company, Maurice "Hank" Greenberg, ...

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