Greenberg Rejected by U.S. Supreme Court in Bid to Scuttle Trial

The U.S. Supreme Court turned away an appeal by Maurice “Hank”Greenberg, refusing to derail a fraud lawsuit by New York state against the former American International Group Inc. chairman.

Three months after a trial in the case began in state court in Manhattan, the justices said they wouldn’t hear contentions by Greenberg and former AIG Chief Financial Officer Howard Smith that federal securities law bars the case from going forward.

Greenberg and Smith are fighting allegations that they used two sham transactions to hide the insurer’s true financial condition. The trial began in September, more than 11 years after former ...