A New York state appeals court has ruled that former CEO of American International Group (AIG) - Get Report Maurice "Hank" Greenberg was permitted to pursue large parts of his defamation suit against former New York Attorney General Eliot Spitzer, Reuters reports.

The charges "adequately stated that Spitzer acted with actual malice" in scrutinizing Greenberg, with the intention of damaging Greenberg's reputation and career while propping up his own, Justice Cheryl Chambers wrote.

"We are, of course, pleased with the appellate court's decision, which will now permit Mr. Greenberg's claims to proceed to trial," Greenberg's lawyer David Boies said.

The decision by the Appellate Division in Brooklyn comes just seven months after Greenberg agreed to a $9 million settlement with current state attorney Eric Schneiderman over civil accounting fraud allegations brought by Spitzer in 2005.

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