A bitter dispute between American International Group Inc. and its chief architect, former Chairman and Chief Executive Officer Maurice R. Greenberg, appears to be over after a Nov. 25 settlement announcement.

Mr. Greenberg, who retired from AIG in March 2005 amid investigations by then-Attorney General Eliot Spitzer, and the company he built into a global financial services giant were engaged in an acrimonious battle almost from the moment he left the job he held for nearly 38 years. Included in the sparring was former AIG Chief Financial Officer Howard Smith, who joined Mr. Greenberg at C.V. Starr & Co. Inc. after both men left AIG’s employ.

Details on the settlement are available in an 8-K filing, but here are highlights:

• Each party agrees to dismiss claims against each other contained in half a dozen different lawsuits.
• AIG agrees to an independent assessment of whether Messrs. Greenberg and Smith are owed reimbursement for legal fees and expenses to which they may have been entitled, up to $150 million.
• Such as AIG is able, it will return to Mr. Greenberg personal property including photographs of him with AIG founder Cornelius Vander Starr, photos of Mr. Greenberg with Chinese officials, a Persian rug previously used outside an AIG boardroom at its 70 Pine St. headquarters in New York and other personal effects not considered AIG business records from Mr. Greenberg’s tenure at AIG.

Also of interest is that the parties will submit to arbitration to determine their rights to tap a directors and officers liability insurance tower that AIG had in effect in 2004 and 2005. Business Insurance reported on the existence of this coverage, led by Cincinnati-based Great American Insurance Cos., in May 2005.

In a joint statement, Robert Benmosche, AIG’s current CEO, said: “We are pleased that we have resolved our differences. The resolution of these long-running disputes will remove a significant distraction and expense and allow AIG to better focus its efforts on paying back taxpayers and restoring the value of our franchise for the benefits of all our stakeholders.” In the same statement, Mr. Greenberg said: “I too am pleased that these long-running disputes are now over, and I want to express my appreciation for Bob Benmosche’s help, and the help of the AIG Board, in resolving them. I look forward to assisting AIG in trying to preserve and restore as much value as possible for all of AIG’s stakeholders.”

After years of bitterness and considerable legal expenses for both sides, it’s good to see closure. A day before Thanksgiving, no doubt AIG investors have reason to give thanks.