AMERICAN INTERNATIONAL GROUP, CONSOL. DERIV. LIT.

C.A. No. 769-VCS.

976 A.2d 872 (2009)

AMERICAN INTERNATIONAL GROUP, INC., CONSOLIDATED DERIVATIVE LITIGATION. American International Group, Inc., Plaintiff, v. Maurice R. Greenberg and Howard I. Smith, Defendants.

Court of Chancery of Delaware.

Decided: June 17, 2009.


Attorney(s) appearing for the Case

Stuart M. Grant, Esquire, Megan D. McIntyre, Esquire, John C. Kairis, Esquire, Christine M. Mackintosh, Esquire, Catherine Pratsinakis, Esquire, Grant & Eisenhofer P.A., Wilmington, DE, for Teachers' Retirement System of Louisiana and Co-Lead Counsel for the Plaintiffs.

Peter C. Harrar, Esquire, Stacey T. Kelly, Esquire, Wolf Haldenstein Adler Freeman & Herz, LLP, New York City, for City of New Orleans Employees' Retirement System and Co-Lead Counsel for the Plaintiffs.

A. Gilchrist Sparks, III, Esquire, S. Mark Hurd, Esquire, Samuel T. Hirzel, Esquire, Morris, Nichols, Arsht & Tunnell, LLP, Wilmington, DE, for American International Group, Inc.

Daniel J. Kramer, Esquire, Paul, Weiss, Rifkind, Wharton & Garrison, LLP, New York City; Stuart L. Shapiro, Esquire, Shapiro Forman Allen Sava & McPherson, LLP, New York City, of counsel for American International Group, Inc.

F. Michael Parkowski, Esquire, Michael W. McDermott, Esquire, Michael W. Arrington, Esquire, Parkowski, Guerke & Swayze, P.A., Wilmington, DE, for Defendant Maurice R. Greenberg.

Nicholas A. Gravante, Jr., Esquire, Robert J. Dwyer, Esquire, Amy L. Neuhardt, Esquire, Boies, Schiller & Flexner, LLP, New York, City; David Boies, Esquire, Boies, Schiller & Flexner, LLP, Armonk, NY, of counsel, for Defendant Maurice R. Greenberg.

Sean J. Bellew, Esquire, Cozen O'Connor, Wilmington, DE, for Defendants ACE Ltd., ACE USA, Inc., ACE INA Holdings, Inc. and Susan Rivera.

Stephen A. Cozen, Esquire, George M. Gowen, III, Esquire, Cozen O'Connor, Philadelphia, PA; H. Lee Godfrey, Esquire, Neal S. Manne, Esquire, Johnny W. Carter, Esquire, Jeremy J. Brandon, Esquire, Susman Godfrey, LLP, Houston, TX, of counsel for Defendants ACE Ltd., ACE USA, Inc. and ACE INA Holdings, Inc.

Richard J.J. Scarola, Esquire, Alexander Zubatov, Esquire, Scarola Ellis, LLP, New York City, of counsel for Defendant Susan Rivera.

Thad J. Bracegirdle, Esquire, Wilks, Lukoff & Bracegirdle, LLC, Wilmington, DE, for Defendants Marsh & McLennan Companies, Inc., Marsh, Inc., Marsh USA Inc. and Marsh Placement Inc.

Gregory P. Joseph, Esquire, Douglas J. Pepe, Esquire, Sandra M. Lipsman, Esquire, Gregory P. Joseph Law Offices, LLC, New York City, of counsel for Defendants Marsh & McLennan Companies, Inc., Marsh, Inc., Marsh USA Inc. and Marsh Placement Inc.

David A. Jenkins, Esquire, Smith Katzenstein Furlow, LLP, Wilmington, DE, for Defendants General Re Corporation and General Reinsurance Corporation.

George M. Garvey, Esquire, Fred A. Rowley, Jr., Esquire, Lika C. Miyake, Esquire, Munger, Tolles & Olson, LLP, Los Angeles, CA, of counsel for Defendants General Re Corporation and General Reinsurance Corporation.

David C. McBride, Esquire, Christian Douglas Wright, Esquire, Tammy L. Mercer, Esquire, Young Conaway Stargatt & Taylor, LLP, Wilmington, DE, for Defendants Karen Radke and Thomas R. Tizzio.

Michael S. Kim, Esquire, Steven W. Perlstein, Esquire, Jonathon D. Cogan, Esquire, Robert W. Henoch, Esquire, Kobre & Kim, LLP, New York City, of counsel for Defendants Karen Radke and Thomas R. Tizzio.

Edward P. Welch, Esquire, Edward B. Micheletti, Esquire, Skadden, Arps, Slate, Meagher & Flom, LLP, Wilmington, DE, for Defendant Edward E. Matthews.

John L. Gardiner, Esquire, Lauren E. Aguiar, Esquire, Skadden, Arps, Slate, Meagher & Flom, LLP, New York City, of counsel for Defendant Edward E. Matthews.

Kurt M. Heyman, Esquire, Patricia L. Enerio, Esquire, Proctor Heyman, LLP, Wilmington, DE, for Defendant Howard I. Smith.

Vincent A. Sama, Esquire, Eric M. Robinson, Esquire, Jeffrey R. Burke, Esquire, Catherine B. Schumacher, Esquire, Winston & Strawn, LLP, New York City, of counsel for Defendant Howard I. Smith.


OPINION

STRINE, Vice Chancellor.

I. Introduction

The motion to dismiss now pending in this derivative suit brought on behalf of American International Group, Inc. raises the following question: may AIG sue its co-conspirators for the harm that AIG suffered as a result of two alleged, illegal conspiracies involving AIG and those third-party conspirators?

The two supposed conspiracies are separate. First, according to the First Amended...

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